Sembcorp says unit begins proceedings against Hin Leong affiliate over gasoil deal
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Hin Leong's Pu Tuo San VLCC supertanker in the waters off Jurong Island.
PHOTO: REUTERS
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SINGAPORE (REUTERS) - Sembcorp Industries on Monday (April 27) said its unit Sembcorp Cogen had begun legal proceedings to assert ownership over some gasoil reserves stored in tanks at Universal Terminal, 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 April 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 a statement issued on Monday.
"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 in the statement.
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 didn't immediately respond to a request for comment.
