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Ship Owner Linked to Troubled Oil Trader Is Under Judicial Management, Business Times Reports

Bloomberg logoBloomberg 14/8/2020 Alfred Cang
a flock of birds flying over a large body of water: Ships and tankers sit off the coast of Singapore on Monday, July 6, 2020. Prime Minister Lee Hsien Loong vowed to hand over Singapore “intact” and in “good working order” to the next generation of leaders, predicting the coronavirus crisis will “weigh heavily” on the nation’s economy for at least a year. © Bloomberg Ships and tankers sit off the coast of Singapore on Monday, July 6, 2020. Prime Minister Lee Hsien Loong vowed to hand over Singapore “intact” and in “good working order” to the next generation of leaders, predicting the coronavirus crisis will “weigh heavily” on the nation’s economy for at least a year.

(Bloomberg) -- Xihe Holdings (Pte) Ltd., a ship owner linked to troubled Singapore oil trader Hin Leong and its founder’s family, has been placed under interim judicial management, The Business Times reported Friday.

A Singapore High Court appointed Grant Thornton Singapore as supervisor of Xihe during a chambers hearing on Thursday, according to the newspaper. Oversea-Chinese Banking Corp. Ltd., one of its lenders, had earlier filed an application to appoint an interim judicial manager. Other creditors also threw their support behind OCBC in the lead-up to the appointment.

OCBC cited “strong distrust” in Xihe’s management after evidence of fraud was uncovered last April at the fabled Hin Leong Trading Pte., a company founded by legendary trader Lim Oon Kuin. Lim and his children own almost 140 ships through Xihe Holdings, its affiliate Xihe Capital (Pte) Ltd. and its subsidiaries.

A representative from Xihe Holdings couldn’t immediately comment when contacted. Nobody replied to an email inquiry sent to OCBC during office hours. It remains to be seen if Xihe Capital’s lenders will file for interim juridical management, the Business Times reported.

Xihe Holdings has been managed by independent directors since Lim stepped down in April. It announced on Wednesday that it shifted control of 16 vessels to another company as part of a revamped business model. Two other businesses owned by the Lim family, Hin Leong and Ocean Tankers Pte Ltd., are currently under judicial management.

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