Lim Oon Kuin agrees to $3.59 billion settlement with HSBC and liquidators

Singapore’s High Court has given the green light to a settlement deal that will see former oil tycoon Lim Oon Kuin and his family pay $3.59 billion to the liquidators of his now-defunct company, Hin Leong Trading Pte, as well as creditor HSBC Holdings Plc.

This settlement puts an end to several years of civil litigation that followed the 2020 collapse of Lim’s oil trading company.

Lim and his family did not admit any liability in the settlement.

Agreement covers interest and legal costs

The settlement, which includes interest and legal costs, was finalized in a consent judgment on Monday.

HSBC, which had an estimated $600 million exposure in the Hin Leong collapse, will benefit from the settlement alongside other creditors.

Hin Leong’s downfall, linked to significant trading losses and questionable financial management, reverberated across Singapore’s oil and shipping sectors.

At its peak, the company was among the nation’s largest independent oil traders, with its business spanning oil storage and bunkering services.

The agreement marks a significant chapter in the legal proceedings that followed the collapse. Despite this settlement, Lim’s legal challenges are far from over.

Lim Oon Kuin faces criminal charges

Though Lim has reached this civil settlement, he still awaits sentencing in a separate criminal case.

He faces charges of cheating and forgery linked to accusations that he manipulated Hin Leong’s financial records to conceal losses and obtain financing.

The court has yet to determine a sentencing date for these charges, leaving his legal battles ongoing.

Lim’s career took a major hit following the 2020 collapse of his company, which he had built from the ground up starting in 1973.

Once a titan in Singapore’s oil trading sector, his reputation was severely tarnished as Hin Leong’s downfall brought scrutiny to the aggressive trading strategies and questionable accounting practices that contributed to the company’s demise.

Global asset freeze and recovery efforts

In May 2021, Singapore’s High Court ordered a freeze on up to $3.5 billion in assets belonging to Lim and his family across the globe.

This move was aimed at preserving assets for creditors while the liquidators worked to recover funds.

Since then, the Lims have raised money by selling off property and business holdings in order to finance the settlement.

While the civil lawsuits are now resolved, the damage to Lim’s legacy as a trader is undeniable.

His once-dominant oil empire crumbled under the weight of financial losses, leaving creditors scrambling for recovery and tarnishing the reputation of what was once a major player in Singapore’s economy.