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Hin Leong prepares to sue OW Bunker, Vanguard files for bankruptcy

Hin Leong prepares to sue OW Bunker, Vanguard files for bankruptcy
Singapore’s biggest independent oil trader Hin Leong is preparing to pursue $1.3m from OW Bunker, while another Singapore bunker trading firm Vanguard Energy has filed for bankruptcy, reports said.

Court documents obtained by Reuters showed that Hin Leong is preparing a writ of summons to commence legal proceedings against OW Bunker East, a subsidiary of OW Bunker, over the sale of goods.

In a separate case, Vanguard has filed for bankruptcy in late October, according to court documents. A trading source told Seatrade Global that OW Bunker is a creditor of Vanguard, but the insolvency of both parties now means OW Bunker would have little success in pursuing its outstanding debts from Vanguard.

OW Bunker declared bankrupt in Denmark last Friday after uncovering an alleged $125m fraud at its Singapore-based Dynamic Oil Trading as well as a $150m risk management loss.

The fall of OW Bunker has triggered a tightening of credit in the Singapore bunker fuel market as ex-wharf fuel suppliers and barge operators preferred to reduce their credit risk exposure for the time being.