The Downfall of Lim Oon Kuin

Lim Oon Kuin, founder of Hin Leong Trading Pte., was declared bankrupt following the collapse of his oil trading empire. Known as OK Lim, his downfall began in 2020 when oil prices plummeted during the COVID-19 pandemic.

Bankruptcy Order Issued for Lim and Family

The Singapore government gazette listed Lim and his children, Lim Huey Ching and Lim Chee Meng, as bankrupt on December 19. The two children previously served as directors of the now-defunct Hin Leong Trading.

Trustees Appointed to Oversee Bankruptcy

Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte. Ltd. were named trustees in the bankruptcy case. Their role will include overseeing the distribution of Lim’s remaining assets to creditors.

Hin Leong’s Rise and Fall

At its peak, Hin Leong traded various oil products, operated storage facilities, and manufactured lubricants. However, the firm’s collapse was fueled by accusations of hiding over $800 million in losses and leaving 20 banks burdened with liabilities.

Settlements and Civil Cases

In September, Singapore’s High Court approved Lim’s agreement to pay $3.59 billion to liquidators and HSBC Holdings Plc. Despite the settlement, Lim admitted he lacked the assets to cover all liabilities, prompting his bankruptcy filing.

Criminal Convictions and Ongoing Appeals

In November, Lim was sentenced to jail for cheating HSBC and instigating forgery. He has appealed the sentence and will not serve time until the appeal hearing concludes.

The Legacy of Lim Oon Kuin

The bankruptcy and criminal cases against Lim Oon Kuin mark a dramatic fall for a once-prominent oil trader. His case serves as a cautionary tale for the industry and highlights the risks of financial misconduct in volatile markets.