Xihe replaces Directors, forms new management team to chart fresh course for Group

Singapore-based tanker shipowner the Xihe Group of Companies (Xihe) on Thursday (30 July) said a new management team has been put in place to chart a fresh course for the group.

This comes following Xihe’s previous announcement that its creditors have adjourned court proceedings in favour of working together with the group towards a consensual restructuring.

Xihe said it has recently hired a highly qualified management team with close to 100 years of collective shore and sea-based experience to drive its corporate finance, marketing, chartering, sale of vessels and fleet management. 

The key personnel on the new management team include: 

• Interim CEO Kenny Lim
• Commercial Director Desmond Chong
• Sales & Purchase Director Michael Tan
• Vice President (Fleet Management) Capt. Zhang Yujie

The group clarified that Lim Oon Kuin and his children are no longer part of the management team and a new board of directors – consisting of a majority of non-executive independent directors – is also being finalised as part of the consensual restructuring with Xihe’s Lenders.

The new team has made significant strides in managing Xihe’s businesses in a short span of two months, despite disruptions brought about by Ocean Tankers Pte Ltd (OTPL) – its main bareboat charterer – being placed under interim judicial management (IJM) in May 2020, it said.

With the assistance and guidance of its legal and financial advisors, Xihe added that its team is taking steps towards achieving consensual restructuring and revamping of the Xihe Group of companies. 

The first of these steps is to terminate all bareboat charter contracts which Xihe had entered into with OTPL and Hin Leong Trading Pte Ltd (HLT) and actively working with the interim judicial managers of OPTL and HLT to seek redelivery of those vessels. 

There is a market for chartering out these vessels and Xihe is actively pursuing opportunities to re-deploy them, noted Xihe.

Secondly, Xihe adds it is seeking to conduct an orderly divestment and rightsizing of its fleet to achieve optimum returns to all stakeholders. 

It has concluded the sale of several of its vessels and is in discussions with a number of potential buyers on a programme of sales, it said.

Thirdly, as part of Xihe’s revamped business model, the group added that it has identified strategic partners to form alliances with. It has engaged, and will be engaging professional, internationally renowned technical and commercial managers to manage and market its vessels for charter, to ensure that the highest standards of safety, quality and efficiency are attained. 

“Just this week, Xihe successfully took redelivery of its 108,953 DWT oil tanker Ocean Queen (IMO 9368223) from HLT (bareboat charterer) and OTPL (ship manager),” said Xihe Holdings in an official release.

“The vessel is now under the technical management of a newly appointed world-class ship manager.

“Xihe is confident of getting its business back on track and with full commitment to bring about the best outcome for all its stakeholders, partners and clients.”

Related: Xihe creditors adjourn court proceedings in favour of consensual restructuring
Related: OCBC files for Xihe Holdings to be placed under judicial management

Photo credit: Xihe Group
Published: 3 August, 2020