Singapore—The High Court approved a request to freeze global assets of up to $3.5 billion (S$4.66 billion) belonging to embattled oil tycoon OK Lim and two of his children, according to an email sent to the company’s creditors, Reuters reported on Monday (May 24).
This has come in the wake of the collapse of oil trading giant Hin Leong Trading Pte Ltd, Lim’s firm.
It has been quite a reversal of fortune for Lim, whose full name is Lim Oon Kuin, and whose humble beginnings date back to 1963, when he delivered diesel in a truck.
His wealth grew to the point of landing him on the top 20 list of richest people in the country.
Lim filed for bankruptcy in April of last year, seeking protection from his company’s creditors. But at that point, Hin Leong’s troubles were only beginning.
Lim was charged with forgery on Aug 14, 2020, for having an executive at his trading company forge a document allegedly issued by UT Singapore Services.
A month later, on Sept 25, the police said in a statement that Lim had been charged with a second charge of abetment of forgery for the purpose of cheating.
An email sent to over 200 of Hin Leong’s creditors on Friday (May 21) read: “Our lawyers will be following up with the next steps in the next few days including to require the Lim Family to disclose their assets on affidavit.”
The request for freezing the assets was made by the creditors, including some of the world’s largest banks, in an attempt to recover billions of dollars owed to them.
In November, HSBC sued OK Lim and his two children with the intent of recovering $85.3 million (S$115.8 million) of the $111.7 million (S$149 million) it received using fake invoices and documents.
Last December, Bank of China asked for a repayment of $187.2 million (S$250 million) from Lim and his two children.
The freezing of assets has increased the prospect that the creditors will recover some of the money they had loaned Lim’s company.
An AFP report said last year said that Lim’s company had “in truth … not been making profits in the last few years” even though its official records showed it to be in the black for 2019.
The endeavour to recover debts owed by Lim’s company is considered to be the largest legal case in living memory in Singapore.
So far, creditors have been able to recover only $270 million (S$359 million) from the company.
The High Court had been requested by liquidators to freeze assets belonging to the Lim family all over the globe, from multi-million-dollar homes to shares, funds and country club memberships, Reuters reported.
/TISG
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