Oil trader Hin Leong squeezed by $4.28b bank debt

Two lenders won’t issue new letters of credit amidst concerns over its ability to repay debt.

Singapore oil trader Hin Leong Trading Ltd. has appointed advisers to help in talks with banks as some of them freeze credit lines to the firm, according to people with knowledge of the matter.

Bloomberg reported on Thursday that at least two lenders won’t issue new letters of credit to Hin Leong amidst concerns over its ability to repay debt. The firm appointed advisers this week to help negotiate with banks for more time to resolve its finances, said the people, who asked not to be identified because the matter is private.

The privately-held company founded by legendary self-made Chinese tycoon Lim Oon Kuin could be the latest casualty of the crash in oil prices and a heightened caution amongst lenders to finance commodity trades.

Speculation over Hin Leong’s predicament is ricocheting around the tight-knit oil trading community in Singapore, one of the world’s most important oil markets and the biggest ship fueling hub.

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