Standard Chartered Faces More Hin Leong Headwinds
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Energy trader Winson Oil Trading is seeking damages from Standard Chartered for failed payments over a diesel cargo sold to Hin Leong Trading.
The Hin Leong debacle continues to unravel with Winson Oil filing the latest case to seek damages, interest and costs – at least $30.4 million – from Standard Chartered, according to court documents.
Documents show that Winson Oil sold a cargo of ultra-low sulfur diesel to Hing Leong and had received a letter of credit (LC) from Standard Chartered in early April. Upon presenting the LC through Credit Agricole Corporate and Investment Bank, Standard Chartered failed to complete the payment.
23 banks were reportedly affected by financial distress at Hin Leong, whose founder reportedly admitted that the Singapore oil trader failed did not disclose losses totaling $800 million. OCBC is amongst the affected lenders who also faced charges from Winson Oil which demanded payment for the sale of fuel financed by the bank.
Hin Leong is currently under Singapore’s judicial management to restructure billions of dollars in debt.
Questions & Answers
Q.What is the core issue that Winson Oil Trading is seeking damages from Standard Chartered for?
What is the core issue that Winson Oil Trading is seeking damages from Standard Chartered for?
Winson Oil Trading is seeking damages from Standard Chartered due to failed payments for a diesel cargo. Standard Chartered reportedly did not complete payment after Winson Oil presented a letter of credit for the ultra-low sulfur diesel sold to Hin Leong.
Q.What is the total amount Winson Oil is seeking from Standard Chartered in this case?
What is the total amount Winson Oil is seeking from Standard Chartered in this case?
Winson Oil is seeking at least $30.4 million from Standard Chartered. This amount covers damages, interest, and costs related to the failed payment for the diesel cargo sold to Hin Leong Trading.
Q.Which other bank has faced similar demands from Winson Oil related to Hin Leong?
Which other bank has faced similar demands from Winson Oil related to Hin Leong?
OCBC is another affected lender that has faced charges from Winson Oil. Winson Oil demanded payment from OCBC for the sale of fuel that the bank had financed, similar to the situation with Standard Chartered.
Q.How many banks were reportedly impacted by Hin Leong's financial issues?
How many banks were reportedly impacted by Hin Leong's financial issues?
Reportedly, 23 banks were affected by the financial distress at Hin Leong. The founder of Hin Leong admitted that the Singapore oil trader failed to disclose significant losses totalling $800 million.
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