Sembcorp unit begins proceedings against Hin Leong affiliate over gasoil deal

Sembcorp unit begins proceedings against Hin Leong affiliate over gasoil deal

Hin Leong partly owns Universal Terminal on Singapore's Jurong Island.
Hin Leong partly owns Universal Terminal - a commercial storage facility located on Singapore's Jurong Island. (Photo: Hin Leong)

SINGAPORE: Sembcorp Industries on Monday (Apr 27) said its unit Sembcorp Cogen has begun legal proceedings to assert ownership over some gasoil reserves stored in tanks at Universal Terminal, which is partly owned by oil trader Hin Leong Trading Pte Ltd.

Just last week, Sembcorp Cogen terminated its gasoil supply and storage agreement with Hin Leong Trading, which is being monitored by Singaporean authorities.

Sembcorp Cogen on Apr 24 obtained a court order to restrain Universal Terminal from moving, removing or disposing of any of the gasoil reserves it claims, and to ensure that the reserves are stored separately from any other gasoil, the parent company said in its Monday statement.

"There is a possibility that the reserves designated for Sembcorp Cogen may be subject to competing claims by one or more third parties," Sembcorp Industries said.

Last week, Hin Leong applied for a court-appointed supervisor to manage the company and restructure billions of dollars of debt owed to multiple banks.

Hin Leong's founder Lim Oon Kuin and his family own 41 per cent of the Universal Terminal through Universal Group Holdings. PetroChina holds 25 per cent and Australian investment bank Macquarie the remaining 34 per cent.

Hin Leong did not immediately respond to a request for comment.

Source: Reuters/ga

Bookmark