Oil trader Hin Leong owes $5.47b to 23 banks
The pandemic has led to a slump in oil prices.
Singapore oil trader Hin Leong Trading, which has begun talks with lenders to extend its credit facilities, owes $5.47b (US$3.85b) to 23 banks, two industry sources told Reuters on Thursday.
The 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.
Some of the banks held a call with Hin Leong and its advisers on 14 April to discuss ways to provide short-term trade finance after some banks failed to provide the firm with a letter of credit to buy at least one cargo of oil products.
The firm’s biggest lenders include HSBC, DBS, OCBC, Bank of China, Societe Generale and Standard Chartered, said the second source, who was briefed on the discussions.
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