The_King Posted April 20, 2020 Share Posted April 20, 2020 (Bloomberg) -- ABN Amro Bank NV has become the latest lender to make a claim against a Singapore oil trading giant that filed for protection from creditors amid a plunge in oil prices. The Dutch bank filed applications for charges related to irrevocable letters of credit tied to goods and documents of Hin Leong Trading (Pte) Ltd., according to filings with Singapore’s Accounting and Corporate Regulatory Authority. The Amsterdam-based lender is the second bank to file charges linked to Hin Leong, which owes almost $4 billion to more than 20 Singaporean and international banks, including HSBC Holdings Plc, DBS Group Holdings Ltd. and Standard Chartered Plc. London-based HSBC has the most exposure to the oil trader, with about US$600 million, people familiar with the situation said. Hin Leong, founded in 1963 by Chinese tycoon Lim Oon Kuin, filed the application for a debt moratorium from Singapore’s High Court on Friday, according to people with knowledge of the matter. Hin Leong owes US$300 million to ABN Amro, the second largest bank creditor after HSBC, according to the April 14 presentation. An ABN Amro spokesman declined to comment. DBS, Singapore’s biggest bank, has exposure of $290 million, followed by Oversea-Chinese Banking Corp. at $250 million and Societe Generale SA at $240 million, according to the report. The ABN charges filed April 17 relate to Hin Leong’s bills of lading, air waybills, cargo and warehouse receipts, as well as the goods shipped related to the bank’s credit. An irrevocable letter of credit can’t be canceled or amended by the issuing bank without the agreement of the parties in the credit transaction. Letters of credit are a critical financial lifeline for commodity traders, used as way of financing short-term trade. A bank issues the so-called L/C on behalf of the buyer as a guarantee of payment to the seller. Once the goods have exchanged hands, the buyer repays the lender. Societe Generale SA last week registered several charges covering goods and receivables financed by the bank and the Hin Leong bank account with the Paris-based bank. 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted April 20, 2020 Share Posted April 20, 2020 that means the trade financing departments of the affected banks never carry out due diligence and risk control properly. do a volume/value/counter-parties analysis shld be able to turn up some abnormalities. banks r also kumgong to the max. wahahahahahah 1 Link to comment Share on other sites More sharing options...
aaur4man Posted April 20, 2020 Share Posted April 20, 2020 23 minutes ago, socrates469bc said: that means the trade financing departments of the affected banks never carry out due diligence and risk control properly. do a volume/value/counter-parties analysis shld be able to turn up some abnormalities. banks r also kumgong to the max. wahahahahahah Lend more, commission gaogao ma 1 Link to comment Share on other sites More sharing options...
The_King Posted April 20, 2020 Author Share Posted April 20, 2020 just a matter of time Link to comment Share on other sites More sharing options...
XianGe Posted April 20, 2020 Share Posted April 20, 2020 (edited) How dafug they owe so much... can buy MU Liao leh Edited April 20, 2020 by XianGe Link to comment Share on other sites More sharing options...
socrates469bc Posted April 20, 2020 Share Posted April 20, 2020 1 hour ago, XianGe said: How dafug they owe so much... can buy MU Liao leh typical greedy chinaman trading house. listen to their useless own bloods rather than the professional managers. most likely their useless own bloods read goldman sachs dec19 bullish commodity reports and think they real sakti to deal with top american investment bank. so absolutely no sympathy from me. wahahahhahahah 1 Link to comment Share on other sites More sharing options...
XianGe Posted April 20, 2020 Share Posted April 20, 2020 3 minutes ago, socrates469bc said: typical greedy chinaman trading house. listen to their useless own bloods rather than the professional managers. most likely their useless own bloods read goldman sachs dec19 bullish commodity reports and think they real sakti to deal with top american investment bank. so absolutely no sympathy from me. wahahahhahahah Ya.. When it comes to running your company, best don't get relative involved... use professionals to help chiu... 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted April 20, 2020 Share Posted April 20, 2020 1 minute ago, XianGe said: Ya.. When it comes to running your company, best don't get relative involved... use professionals to help chiu... yeah, best is not to get the own bloods involved to prevent impaired judgement. seen too many examples, mostly in chinaman companies. best is to have a fully professional management team. so far, the only chinaman company which have a fully professionalized management team is wilmar but that is becos on the insistence of their american partner. 1 Link to comment Share on other sites More sharing options...
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