Editor’s note [21 August 2023]: Article edited to reflect use of correct debt currency; SGD 30.4 million changed to USD 30.4 million.
Singapore-based oil trading firm Winson Group is reportedly taking legal action against the republic’s third largest bank Oversea-Chinese Banking Corp (OCBC) for refusing to honour a letter of credit issued to Winson Group over a diesel trade with financially troubled Hin Leong Trading.
Winson stated in a 1 June statement filed to the High Court of Singapore that OCBC failed to pay USD 30.4 million from a letter of credit it issued to finance a diesel trade for Hin Leong, reported Bloomberg.
The letter of credit was purportedly issued on 6 April followed by a notice from OCBC to Winson on 23 April that it would not be honouring the payments due to doubts over Hin Leong’s financial status.
In the court filing, Winson stated OCBC allegedly missed the deadline on 18 May and the letter of credit expired on 2 June causing much damage to itself.
The case has been scheduled for a pre-trial conference on July 8.
Related: Winson Group and ZenRock Commodities reassure fiscal stability despite Hin Leong fiasco
Photo credit: Aditya Chinchure
Published: 5 June, 2020
