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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.

Lee Hong Liang, Asia Correspondent

November 12, 2014

1 Min Read
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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.

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Singapore

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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