SINGAPORE – Former oil tycoon Lim Oon Kuin, better known as OK Lim, and his two children, Lim Huey Ching and Evan Lim Chee Meng, have been declared bankrupt, as announced in the government gazette on Friday (Dec 27).
The 82-year-old Lim and his children consented in September to a judgment ordering them to pay US$3.5 billion (S$4.7 billion). The sum represents the unsecured debts of Hin Leong Trading, the family’s now-defunct oil trading company, which went into compulsory liquidation in 2020.
The Lims admitted they did not have sufficient assets to satisfy all claimants and indicated their intent to file for bankruptcy. A bankruptcy order, effective Dec 19, was subsequently issued, and their bankruptcy estates will now be managed by trustees Leow Quek Shiong and Seah Roh Lin of BDO Advisory.
Civil Trial Ends with Consent Judgment
The decision to accept the judgment marked the conclusion of a civil trial that began in August 2023. Liquidators had sought compensation from the Lim family for concealing Hin Leong’s financial losses and overstating profits by US$2.1 billion between 2010 and 2020.
During this period, the company incurred US$808 million in losses from futures and swaps, which were allegedly hidden to portray a false image of profitability. The judgment of US$3.5 billion equates to the full amount of the company’s unsecured debts as of April 2020.
The consent judgment, which all parties agreed to, eliminated the need for further testimony from the Lim family and brought the trial to an official close.
Criminal Conviction Adds to Lim’s Woes
Lim’s bankruptcy follows his conviction in a separate criminal trial in May 2023, where he was found guilty of cheating and abetting forgery in a massive trade financing fraud scheme. Last month, he was sentenced to 17-and-a-half years in prison for orchestrating one of Singapore’s largest trade financing fraud cases.
His lawyer has since announced plans to appeal the sentence.
This development marks the end of the road for a once-dominant figure in Singapore’s oil trading industry and highlights the severe consequences of financial misconduct. (With reports from CNA)