Singaporean oil trader Hin Leong Trading has appointed advisors after suffering severe liquidity issues.

Waning confidence amongst banks for the firm has caused at least two lenders to refuse letters of credit (L/Cs) for the trader.

Crisis point

Hin Leong has reached crisis point as fuel traders suffer the double impact of a historic oil price crash prompted by a price war between Russia and Saudi Arabia alongside falling demand as an indirect result of the coronavirus pandemic.

The Bloomberg news service meanwhile has reported that at least two banks had refused new L/Cs for the oil trader amid concerns over its ability to repay debt.

Legendary tycoon

Established in 1963 by legendary self-made Chinese tycoon Lim Oon Kuin, Hin Leong is now recognised as one of Asia's largest fuel suppliers.

The integrated energy group is involved in several activities including oil trading, lubricant blending and sales, bunker and diesel supply, as well as storage and logistics support.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.