Hin Leong owners sell repossessed vessel
Fratelli Cosulich, a licensed bunker player in Singapore, has picked up a bunker tanker redelivered to the controlling Lim family's Xihe Group of special purpose vehicles. The tanker was delivered on Monday to its new owner
The buyer of the tanker says it has carried out due diligence on the transaction to mitigate the risk of exposure to Hin Leong’s legal tussles with creditors
THE owners of Singapore oil trader Hin Leong have sold a tanker they seized control from the financially distressed trading firm to bunker supplier Fratelli Cosulich.
The Italian company said it took delivery of the 4,650 dwt tanker on Monday. It plans to deploy it for bunkering purposes in Singapore’s waters.
The tanker, formerly known as Marine Elite, has been renamed Grazie Cosulich.
Lloyd’s List understands Hin Leong's shipping affiliate, Ocean Tankers, is the technical manager of the tanker sold. The said vessel was owned by the so-called Xihe Group of special purpose vehicles set up by the family of OK Lim and was on bareboat charter to Hin Leong.
It has been reported that Xihe had recently hired a shipping expert to prepare to directly market tankers including 43 vessels it sought to terminate bareboat charters with Ocean Tankers.
Mr Lim founded Hin Leong, a major oil trading firm based out of Singapore, that has turned insolvent amid allegations of fraud when raising loans from banks.
Hin Leong has also tapped Ocean Tankers to issue bills of lading to back these loans.
Some lenders holding these bills of lading have issued writs of summons against vessels run by Ocean Tankers.
Fratelli Cosulich maintained that it has performed the required due diligence on the tanker purchased at “a market-level price” from Ocean Tankers.
Note: This article has been amended from a previous version suggesting Marine Elite was on the operating fleet of Ocean Tankers. The tanker as advised to Lloyd's List, was on bareboat charter to Hin Leong.