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SINGAPORE – The family that owns beleaguered Singaporean oil trader Hin Leong Trading (HLT) is seeking to block creditor OCBC’s request to appoint overseers for the family’s Xihe Holdings and four other subsidiaries to recoup its debt.
Oversea Chinese Banking Corp (OCBC) applied last week for the Singapore High Court to appoint judicial managers over Xihe, owned by the family of Hin Leong founder Lim Oon Kuin, known as O.K. Lim.
Kenny Lim Oon Cheng, Xihe Holdings interim chief executive, said in a July 28 affidavit reviewed by Reuters that granting OCBC’s request will “disrupt the constructive discussions that the Xihe Group has had with third parties including lenders”.
It could also result in a fire sale of its assets and “a destruction of value” for shareholders including lenders, he added.
OCBC’s application is an attempt to obtain a “backdoor” ruling to freeze the Lim family’s assets in Xihe Group “to protect their interests as lenders to HLT” and its other shipping company Ocean Tankers Pte Ltd, Kenny Lim also said.
HLT owes OCBC $250 million.
OCBC declined to comment when contacted by Reuters.
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