(Bloomberg) — Singapore’s High Court approved former oil tycoon Lim Oon Kuin’s agreements to pay about $3.59 billion to the liquidators of his company and creditor HSBC Holdings Plc, ending the multi-year civil cases against him and his family.
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The Lims didn’t admit liability. They will pay the sum with interest and costs in the consent judgments agreed in court proceedings on Monday. OK Lim and his children Evan Lim Chee Meng and Lim Huey Ching will file for bankruptcy, they said in separate statements.
“For all of the civil suits that have been made against me, while I continue to deny the claims, I do not wish to take up any more of the court’s time and resources,” said Lim, 82. “I do not have enough assets to pay all of them and will therefore be applying for bankruptcy.”
Bloomberg News earlier reported the planned agreements with the liquidators of Lim’s collapsed Hin Leong Trading Pte. and other claimants. HSBC had the most exposure at $600 million among its lenders, based on estimates in previous court filings. The London-based bank did not immediately respond to a request for comment.
It remains unclear how much of the $3.59 billion will be recovered to repay creditors. The oil trader was accused of hiding over $800 million in losses and counted more than 20 banks including DBS Group Holdings Ltd. as creditors. The younger Lims were both directors at Hin Leong.
The twist of events is an ignominious end to the elder Lim’s trading career. He had grown Hin Leong, which he founded in 1973, into the finance hub’s once-largest independent oil trader with interests spanning bunkering to storage businesses. A plunge in oil prices in 2020 brought Lim’s empire crashing down.
The Lims also made similar arrangements with other creditors. This includes Sembcorp Cogen Pte and French bank Credit Agricole SA, which are in the process of entering similar judgments for a total sum of $142 million.
The lead liquidator for Hin Leong, Goh Thien Phong, said “an important milestone” was reached with today’s agreements. Drew & Napier LLC’s Cavinder Bull represented the liquidators while the elder Lim’s lawyers are from Davinder Singh Chambers LLC.
Lim’s legal troubles are not over. The elder Lim is due to be sentenced at a later date after being convicted in a separate criminal trial for offenses related to cheating and forgery. Lim said he plans to appeal against his conviction.
Singapore’s High Court approved a request to freeze as much as $3.5 billion of assets worldwide belonging to Lim and his family in May 2021. The Lims have been raising money also by selling assets including property and business holdings in recent years.
–With assistance from Alfred Cang and Chanyaporn Chanjaroen.
(Updates with statement from Lims from second paragraph, more context.)
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