If they go down it's a pretty big deal.
From Reuters:
Singapore oil trader Hin Leong meets banks over finances - sources
SINGAPORE, April 15 (Reuters) - Singapore oil trader Hin Leong held a call with creditors on Tuesday after banks failed to provide a letter of credit to the trading firm to purchase at least one cargo of oil products due to load this month, four sources said.....MORE
The global coronavirus pandemic has led to an unprecedented slump in fuel demand and hammered oil prices, making it difficult for trading firms to make a profit. Hin Leong is one of the largest fuel traders in Asia and an operator of a major tanker fleet.
Several banks which offer credit facilities to Hin Leong held a call with the company and its advisors on Tuesday, three sources with knowledge of the matter said. The meeting was to discuss ways to provide short-term trade finance for the firm to continue trading operations, the sources said.
“Things are heading in a positive direction but it will take some time,” said one of the three people with knowledge of the call.
Hin Leong did not answer emails and telephone calls from Reuters seeking comment.
The company has appointed accounting firm PwC and law firm Rajah & Tann as its advisers for its negotiations with banks, two sources said.
Rajah & Tann declined comment and PwC had no immediate comment.
Letters of credit are the tool used to guarantee payment to a counterparty for the purchase of a cargo. Without them, companies struggle to trade....
