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 has apparently won the backing of the International Chamber of Commerce (ICC) against Standard Chartered Bank (Singapore) and Oversea-Chinese Banking Corp (OCBC) over Hin Leong Trading (HLT) related disputes, reports Reuters.
The company’s claims at the ICC were allegedly under its Documentary Instruments Dispute Resolution Expertise (DOCDEX), a dispute resolution procedure specifically designed for trade finance.
Favourable DOCDEX decisions are non-binding unless parties, in this case – OCBC and Standard Chartered Bank have all agreed.
Nevertheless, Winson Group purportedly believes this will bolster its claims in court against the two banks.
Winson Group took legal action in June against Standard Chartered Bank over an unpaid letter of credit worth USD 30.4 million issued for a diesel cargo it sold to HLT.
Court documents purportedly showed that Winson Group obtained a letter of credit from Standard Chartered in early April when it sold a cargo of ultra-low sulphur diesel to HLT.
Subsequently, when the letter of credit was due in May, the bank did not honour the payments and therefore Winson Group took action to seek damages, costs and interest from the bank.
Similarly, the company is taking action against OCBC bank for refusing to honour a letter of credit worth USD 30.4 million issued to Winson Group over a diesel trade with financially troubled Hin Leong Trading.
Related: Winson Group seeks SGD 30.4 million from Standard Chartered over HLT related trade
Related: Winson Group seeks SGD 30.4 million from OCBC over credit pull in Hin Leong trade
Related: Winson Group and ZenRock Commodities reassure fiscal stability despite Hin Leong fiasco
Photo credit: aditya-chinchure
Published: 16 September, 2020
