About the Lawsuit
Winson oil Trading one of Singapore’s leading oil trading companies, filed a lawsuit against Standard Chartered Bank for SG$41.84 million in damages arising from the Hin Leong Oil trading transaction.
According to a report published by Reuters, the mega Oil trading company Winson Oil has filed a lawsuit against Standard Chartered and Hin Leong, seeking damages and interest amounting to SG$41. 84 arising from an oil trade deal. This is in compensation for the alleged breach of contract from the bank’s side.
According to the court filings, this decision was taken by the company Winson Oil Trading, with the intention of recovering USD 30.4 million in payment for a diesel cargo it supplied to Hin Leong Trading. The lawsuit alleges that the bank violated its obligations under the agreement and acted fraudulently.
About The Issue
According to court documents that are publicly available, Winson Oil had sold an ultra-low sulfur diesel cargo to Hin Leong on April 2 and had obtained a letter of credit (LC) from Standard Chartered Bank. As this remains a common and standard financial practice in oil transaction dealings, it posed no concern to Winson Oil at the time of the said transaction.
Even though the letter of credit was presented to the Standard Chartered Bank by Winson Oil through Credit Agricole Corporate and Investment Bank, the Standard Chartered Bank failed to make the payment, which was said to be due in May, according to the documents.
The Controversy
Hin Leong, which was once one of Asia's largest independent oil merchants, was placed under judicial supervision in April to restructure billions of dollars in debt following the discovery of a vast, years-long fraud at the corporation following a drop in oil prices.
The lawsuits brought by Winson Oil against the banks are just one of many in Singapore that deal with Hin Leong's business partners and banks over certain payment issues that came from oil deals with the trader.
About Winson Oil
Since 1998, Winson Group has become a leading international energy trading company in Asia and is one of the best companies for oil trading and bunkering business. They have offices and projects in Hong Kong, Singapore, Taiwan, Mainland China, Dubai, and other Asian countries to provide customers with full-service solutions.
The group maintains close relationships with major refineries across Asia, and they are highly efficient at providing their clients with every supply chain service, including onshore storage tanks, vessels, shipping, distribution, and logistics planning.
By capitalizing on its strong market position and in-depth awareness of customer needs, the group has established three distinct lines of business: international oil trading, global marine bunkering, and oil storage and terminal facilities. Click here for more information on the Winson Group.
By capitalizing on its strong market position and in-depth awareness of customer needs, the group has established three distinct lines of business: international oil trading, global marine bunkering, and oil storage and terminal facilities. Click here for more information on Winson Group.
