Singapore oil tycoon Lim Oon Kuin declared bankrupt by court amid Rs 29797 crore settlement after collapse of...

Lim Oon Kuin, the founder of Singapore-based oil trading company Hin Leong Trading Pte., has been officially declared bankrupt. Known as "OK Lim," the 82-year-old once helmed a successful oil trading empire that collapsed in 2020 during the Covid-19 pandemic. The downfall followed a sharp drop in oil prices, revealing significant financial troubles within the company.

The bankruptcy order, issued on December 19, also extends to Lim’s children, Lim Huey Ching and Lim Chee Meng, who served as directors at Hin Leong. The details of the bankruptcy were published in the government gazette. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd. have been appointed as trustees to oversee the bankruptcy process.

At its peak, Hin Leong was a major player in the oil industry, trading various oil products, producing lubricants, and managing storage facilities and loading terminals. However, the company faced allegations of concealing over USD 800 million in losses, leaving more than 20 banks with substantial liabilities.

In September, Singapore’s High Court approved agreements for the Lim family to pay USD 3.59 billion to liquidators and creditor HSBC Holdings Plc, resolving civil claims against them. Lim admitted that he lacked the assets to fulfill these obligations, leading him to seek bankruptcy protection.

In addition to financial troubles, Lim faced legal issues. In November, he was sentenced to jail for cheating HSBC and instigating document forgery. Lim has appealed the verdict and will not begin serving his sentence until after the appeal process is completed.

Lim's legal representatives at Davinder Singh Chambers LLC and BDO Advisory have not commented on the case. This marks a dramatic fall from grace for Lim, once a prominent figure in Singapore’s oil trading industry.