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HSBC accuses Zenrock of fraudulent dealings, files for legal action amid credit concerns

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In the filing, HSBC requests for Zenrock’s management to be replaced for deceptively using the same cargo to secure loans from multiple banks, reports Bloomberg.
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UK-based HSBC Holdings Plc has allegedly filed an application to the Singapore High Court to place Zenrock Commodities Trading Pte Ltd under judicial management, a form of debt restructuring.

In the filing, HSBC accused Zenrock of being involved in fraudulent deals whereby the company used the same cargo as collateral to secure loans from multiple banks, reports Bloomberg.

This allegation comes off the bat of Zenrock pledging financial stability following the Hin Leong Trading scandal last month. 

HSBC have purportedly recommended KPMG LLP to oversee ZenRock and a pre-trial conference is supposedly scheduled on June 11.

Related: Winson Group and ZenRock Commodities reassure fiscal stability despite Hin Leong fiasco
Related: Singapore High Court concedes interim judicial management to Hin Leong Trading


Photo credit: HSBC Holdings Plc
Published: 8 May, 2020

 

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