Lim Oon Kuin, the founder of the once-mighty Hin Leong Trading Pte., has been declared bankrupt in Singapore, marking a dramatic downfall for the oil trading magnate known as OK Lim. Bankruptcy orders for Lim and his children, Lim Huey Ching and Lim Chee Meng, were issued on December 19, according to the government gazette. Both of his children had served as directors of the company.
The trustees overseeing the bankruptcy process are Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd., the gazette confirmed.
A Collapsed Empire
Hin Leong, at its peak, was a major force in the oil industry, trading petroleum products, manufacturing lubricants, and operating storage terminals. However, the business collapsed in 2020 as the Covid-19 pandemic triggered a sharp fall in oil prices, exposing hidden financial troubles.
The company was accused of concealing more than $800 million in losses, leaving over 20 banks with significant liabilities.
In September, Singapore’s High Court approved settlements requiring the Lim family to pay $3.59 billion to the liquidators of Hin Leong and its main creditor, HSBC Holdings Plc. This resolved a civil lawsuit but left Lim facing insurmountable financial obligations.
Lim, now 82, commented in an email statement:
“While I continue to deny the claims made against me in all the civil suits, I did not wish to take up any more of the Court’s time and resources. I also informed these claimants that I do not have assets to pay all of them and will therefore be applying for bankruptcy.”
Legal Battles and Criminal Charges
Lim’s financial woes are compounded by legal troubles. In November, he was sentenced to prison for defrauding HSBC and inciting forgery. However, he has filed an appeal and will not serve his sentence until the appeal is heard.
Representatives for BDO Advisory were unavailable for comment.
A Sobering End
Hin Leong’s collapse is one of the most significant corporate failures in Singapore’s history. Lim’s downfall serves as a cautionary tale about the risks of aggressive expansion and the perils of financial mismanagement in the high-stakes oil trading industry.
