Court-led supervision of Lim family’s shipping unit Xihe Holdings sought by OCBC

Court-led supervision of Lim family’s shipping unit Xihe Holdings sought by OCBC


Singapore bank OCBC is seeking a court-appointed supervisor to manage shipping firm Xihe Holdings Pte Ltd and four of its subsidiaries.

Xihe Holdings is part of the troubled Lim family business empire, which also includes oil trader Hin Leong Trading and fleet manager Ocean Tankers (Pte) Ltd, both of which were placed under court-appointed supervisors earlier this year.

Xihe Holdings, owned by Hin Leong founder Lim Oon Kuin, his son Evan Lim Chee Meng and daughter Lim Huey Ching, controls a shipping fleet that ranges from coastal barges to very large crude carriers (VLCCs).

OCBC wants a court-appointed manager to run Xihe to maximise its chances of recouping some of the money it is owed. The bank wants to avoid the risk of other creditors trying to sell assets belonging to Xihe and its subsidiaries in a fire-sale.

It also wants to preserve the company’s assets. OCBC discovered that $208 million had been transferred from two of the Xihe companies to Hin Leong via Ocean Tankers “for no valid commercial purpose”, and some charters of OCBC-financed vessels were terminated without the bank’s consent.

Hin Leong is seeking to restructure billions of dollars of debt after the oil price crash revealed a massive, year-long fraud at the once fabled trading house. OCBC is owed $250 million, making it Hin Leong’s fourth biggest secured creditor, according to a presentation by Hin Leong to lenders in April.

For more information visit www.oceantankers.com.sg

27th July 2020