Former oil tycoon Lim Oon Kuin, widely known as OK Lim, and his two children, have been declared bankrupt. The bankruptcy order, made effective on 19 December 2023, was announced in the government gazette on 27 December.
The decision follows the family’s consent in September to a judgment of US$3.5 billion (S$4.7 billion) being entered against them. This amount corresponds to Hin Leong Trading’s unsecured debts as of April 2020, when the company collapsed amidst allegations of financial misrepresentation and insolvency.
In September, the Lim family acknowledged they lacked sufficient assets to meet all claims and indicated they would file for bankruptcy. Trustees Leow Quek Shiong and Seah Roh Lin from BDO Advisory will now oversee the management of their bankruptcy estates.
The judgment marked the conclusion of a civil trial initiated by Hin Leong’s liquidators in August 2023. The trial aimed to recover losses stemming from years of alleged financial irregularities at Hin Leong, which collapsed in 2020 under debts exceeding US$3.5 billion.
During the trial, the Lim family was accused of concealing US$808 million in trading losses from 2010 to 2020 by overstating profits by an estimated US$2.1 billion. The civil trial was effectively terminated when the Lims consented to the judgment, replacing the need for their testimony.
The family’s actions during Hin Leong’s collapse were described as an intentional effort to portray the company as profitable when it was deeply insolvent. The full judgment sum mirrors the total unsecured debts of the once-prominent oil trading company.
This latest development follows Lim’s conviction in May 2023 in a separate criminal case. He was found guilty of cheating and abetting forgery in one of Singapore’s most significant trade financing fraud cases. Sentenced to 17-and-a-half years in jail in November 2023, Lim is currently appealing the sentence.
The bankruptcy declaration brings further attention to the downfall of Hin Leong Trading, once a key player in Singapore’s oil trading sector. The company’s collapse highlighted systemic risks in the industry and resulted in increased scrutiny of financial practices within similar firms.
Legal experts note that a consent judgment, such as the one agreed to by the Lims, represents a formal agreement between disputing parties and avoids the need for a prolonged trial. While it resolves the immediate civil case, the bankruptcy proceedings are expected to be complex, given the scale of debts involved.
Hin Leong’s compulsory liquidation and the associated bankruptcy of the Lim family mark one of the most significant business collapses in Singapore’s history.
