Singapore's Ocean Bunkering Still Operating Amid Hin Leong Uncertainty: Sources
Ocean Bunkering, the top-three-ranked bunker supplier in Singapore, appears still to be operating this week despite reports of financial troubles for its parent company, oil trading firm Hin Leong.
Three bunker industry sources familiar with the Singapore market told Ship & Bunker that Ocean Bunkering's operations appeared to be continuing this week.
Last week Bloomberg reported two of Hin Leong's lenders were declining to issue it with new letters of credit, and on Wednesday the news agency followed that story with a report that the oil trading company may owe as much as $3 billion to its lenders.
Lights Remain On
One source said Ocean Bunkering had cut down its operations just to fulfilling previous commitments.
"They aren't offering for new enquiries, but are continuing to supply existing customers," the source said.
"So it's not shut down with the lights out."
Two other sources said its operations appeared to be continuing as normal, without commenting on whether it was taking on new customers.
About half of the 14 bunker barges listed on Ocean Bunkering's website appear to be moving this week, according to vessel-tracking websites....MOREAnd from Bloomberg via The Straits Times:
Singapore oil trader Hin Leong owes banks at least $4.25 billion
Banks have a combined exposure of at least US$3 billion (S$4.25 billion) to Singapore's Hin Leong Trading and are in talks with the privately held oil trader over how to shore up its finances amid concerns over its liquidity, according to people with knowledge of the matter.
The group of lenders including HSBC Holdings, DBS Group Holdings and OCBC Bank, held a virtual meeting with the trader and its advisers on Tuesday (April 14), according to the people, who asked not to be identified because they're not authorised to speak publicly. As many as 10 banks are involved, according to one of the people. HSBC has the biggest exposure, at about US$600 million, they said.
Singapore's close-knit oil trading community is gripped by speculation over the predicament of one of its biggest players and the potentially far-reaching impact its difficulties could have on the market and trading partners. Before crude's spectacular crash, it would have been almost unfathomable that a company of Hin Leong's status could be in such a position.....MORE
