The liquidators of Lim Oon Kuin’s collapsed oil trading empire are set to recover about US$3.5 billion ($4.48 billion) from the fallen tycoon and his children in order to end a Singapore civil lawsuit, according to people with knowledge of the matter.
In what is known as a consent judgment, the Lims will pay the billion-dollar sum with interest and costs to end the suit, the people said, asking not to be named discussing information that isn’t public yet. Hin Leong Trading Pte. and its court-appointed managers had sued the Lims to recover funds to pay its creditors.
The details of the agreement are set to be announced in a Singapore court on Monday. Lawyers representing the liquidators did not immediately reply to emailed requests seeking comments. Lim will issue a statement as soon as court proceedings come to a close, according to his lawyer, without commenting further.
The twist of events is an ignominious end to the elder Lim’s trading career. He had grown Hin Leong, which he founded in 1973, into the finance hub’s once-largest independent oil trader with interests spanning bunkering to storage businesses.
Beyond this agreement with the liquidators, Lim and his children also plan to proceed on this basis with other claimants, which includes HSBC Holdings Plc, the people familiar said. The London-based bank has the most exposure at US$600 million, based on estimates in previous court filings.
Lim’s legal troubles are not over. He is due to be sentenced later this week after being convicted in a separate criminal trial for offenses related to cheating and forgery.
