Market News

By Weilun Soon

(Bloomberg) -- Former tycoon Lim Oon Kuin has been declared bankrupt in Singapore, following the collapse of his oil trading empire. 

The name of the founder of Hin Leong Trading Pte. and his children Lim Huey Ching and Lim Chee Meng were listed as having been issued a bankruptcy order on Dec. 19, the  government gazette showed. The younger Lims were both directors at the company. 

Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd. are the trustees, according to the gazette.

At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading terminals and storage facilities. But the downfall of the man widely known as OK Lim came in 2020, as Covid—19 sent oil prices into freefall. 

Hin Leong was accused of hiding more than $800 million in losses and leaving more than 20 banks with huge liabilities. 

Singapore’s High Court in September approved the Lims’ agreements to pay $3.59 billion to the liquidators of his collapsed firm and creditor HSBC Holdings Plc, ending the civil case against him.  

“While I continue to deny the claims made against me in all the civil suits, I did not wish to take up any more of the Court’s time and resources and I therefore offered to all the claimants who sued me that I will consent to judgment without admission to liability,” Lim, 82, said in a emailed statement late Saturday. “I also informed these claimants that I do not have assets to pay all of them and will therefore be applying for bankruptcy.”

Separately, Lim was sentenced in November to jail for cheating HSBC and instigating forgery. Lim filed an appeal, and will not begin to serve his sentence until after the appeal hearing.

Representatives of BDO didn’t immediately respond to an email seeking comment outside of regular business hours.

(Updates with statement from Lim in seventh paragraph.)