Singaporean oil trader OK Lim, once a leading player in the city's busy bunker trading sector, has been declared bankrupt after consenting to a multibillion-dollar court judgment in favor of his former company's creditors.
Lim and his children - Evan Lim Chee Meng and Lim Huey Ching - owe a combined $3.5 billion in connection with the collapse of Hin Leong Trading, the family's energy brokerage and shipping firm. Hin Leong operated at a loss for years, and to fill the gap, Lim had one of his executives create fake sales orders in order to apply for accounts receivable financing from his bankers. The fraudulent scheme collapsed in 2020 after a large trading bet went bad, and the firm quickly went bust.
Hin Leong's bankers lost billions on the company's unsecured debt, making the scheme one of Singapore's biggest trade financing frauds ever. To recover their losses, the creditors took control of Hin Leong, and the firm's tanker fleet, its real estate and its other assets were sold off. OK Lim's family has faced a string of legal actions ever since.
In September, Lim and his children agreed to pay a court judgment sought by Hin Leong's creditors, who wanted to hold the family responsible for the balance of the firm's unsecured debt. Without admitting fault, Lim consented to settle the matter for $3.5 billion, cutting short a civil trial before the beginning of testimony. However, the family admitted that they did not have resources to pay the total amount. They formally declared bankruptcy in late December, and their assets will now be managed by a trustee.
OK Lim was also prosecuted on criminal charges for the Hin Leong fraud, and he received a stiff sentence. In May 2024, he was convicted of three counts of cheating and forgery (out of an initial indictment of 130 charges). Six months later, Judge Toh Han Li of Singapore’s State Courts sentenced Lim - who is 82 - to serve 17.5 years in prison. Lim is appealing the verdict, and will not serve any time until after the appeal process is completed.
