Singaporean oil tycoon Lim Oon Kuin has been declared bankrupt by the court under the Rs 29797 crore settlement after the collapse of…

Lim Oon Kuin, the founder of Singapore-based oil trading company Hin Leong Trading Pte., has officially been declared bankrupt. Known as ‘OK Lim’, the 82-year-old once ran a successful oil business empire that collapsed in 2020 amid the Covid-19 pandemic. The decline followed a sharp drop in the price of oil, revealing significant financial problems within the company.

The bankruptcy order, issued on Dec 19, also extends to Lim’s children, Lim Huey Ching and Lim Chee Meng, who were directors at Hin Leong. Details of the bankruptcy were published in the Government Gazette. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd. were appointed as administrators to oversee the bankruptcy process.

At its peak, Hin Leong was a major player in the oil industry, trading various petroleum products, producing lubricants and managing storage facilities and loading terminals. However, the company has faced allegations that it hid more than $800 million in losses, leaving more than 20 banks with substantial debts.

In September, Singapore’s High Court approved deals for the Lim family to pay US$3.59 billion to liquidators and creditor HSBC Holdings Plc, settling civil claims against them. Lim admitted that he lacked the assets to meet these obligations, prompting him to file for bankruptcy protection.

In addition to financial problems, Lim faced legal problems. In November, he was jailed for defrauding HSBC and instigating the forgery of documents. Lim has appealed the verdict and will not begin serving his sentence until after the appeal process is complete.

Lim’s legal representatives at Davinder Singh Chambers LLC and BDO Advisory did not comment on the case. It marks a dramatic fall from grace for Lim, once a prominent figure in Singapore’s oil trading industry.