Singapore declares Ex-Tycoon Lim Oon Kuin bankrupt following oil empire collapse

Singapore has officially declared Lim Oon Kuin, the former tycoon and founder of Hin Leong Trading Pte., bankrupt. This decision follows the dramatic collapse of his once-thriving oil trading empire. Alongside Lim, his children, Lim Huey Ching and Lim Chee Meng, were also issued bankruptcy orders on December 19, as reported in the government gazette. Both children had served as directors at Hin Leong Trading.

Downfall of an Oil Empire

Hin Leong Trading was at its peak a major player in the oil industry, engaging in trading a variety of oil products, manufacturing lubricants, and operating storage facilities and loading terminals. However, the empire began to unravel in 2020 during the COVID-19 pandemic, which caused oil prices to plummet. The company faced allegations of concealing over $800 million in losses, leaving more than 20 banks burdened with massive liabilities.

Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd. have been appointed as trustees for the bankruptcy proceedings, according to the official gazette. Hin Leong’s collapse marked one of the most significant corporate scandals in Singapore’s history.

The Singapore High Court, in September, approved agreements by Lim and his children to repay $3.59 billion to the liquidators of Hin Leong and creditor HSBC Holdings Plc. This resolution brought an end to the civil case against Lim.

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In an emailed statement, Lim, aged 82, expressed his decision to consent to judgment without admitting liability, explaining that he wished to save the court’s time and resources. He added, “I do not have the assets to pay all the claimants and will therefore be applying for bankruptcy.”

Lim’s legal challenges extend beyond financial matters. In November, he was sentenced to jail for cheating HSBC and instigating forgery. However, he has filed an appeal, delaying the commencement of his sentence until the appeal process concludes.

BDO representatives have not provided comments regarding the bankruptcy proceedings outside regular business hours.

The story of Lim Oon Kuin and the fall of Hin Leong Trading serves as a cautionary tale about corporate transparency and the far-reaching consequences of financial mismanagement.