The suit follows a Singapore court’s dismissal of an application by Unipec Singapore for an injunction to stop Credit Agricole from paying Hin Leong for a diesel shipment.
Singapore-based oil trader Winson is taking OCBC Bank to court over its alleged failure to pay $30.4 million from a letter of credit issued by the bank to Hin Leong to finance the purchase of diesel.
According to OCBC, it does not have to pay Winson because of «serious doubts» over Hin Leong’s paperwork and cargo backing the deal, court documents said, «Bloomberg» reported on Friday.
The Hin Leong debacle features some 23 banks that have lent a total of nearly $4 billion, including $600 million from HSBC, the largest creditor. According to an affidavit, the group of lenders may only get back 18 cents on the dollar.
The oil firm also reportedly did not disclose $800 million of losses through futures trading, according to a court filing based on an affidavit involving its founder Lim Oon Kuin.