February 27, 2020 / 8:32 AM / in a month

CORRECTED-UPDATE 3-Chinese oil trader Hontop Energy goes into receivership in Singapore -regulator

(Corrects paragraph 2 to say KPMG is the receiver not liquidator)

By Jessica Jaganathan and Chen Aizhu

SINGAPORE, Feb 27 (Reuters) - Hontop Energy (Singapore) Pte Ltd, the trading arm of a Shandong-based refiner, has gone into receivership, according to its business profile on the website of Singapore’s accounting and corporate regulator.

Singapore bank DBS, one of Hontop’s creditors, has appointed accounting firm KPMG as the receiver, a KPMG official told Reuters.

Hontop officials and DBS declined to comment. ACRA directed Reuters to its website in response to requests for comment.

Receivership is a type of corporate bankruptcy in which a trustee or receiver is appointed by bankruptcy courts or creditors to run the company.

Hontop, a unit of China Wanda Group, buys crude oil for the group’s 100,000 barrels per day refinery in Dongying, Shandong province, operated by Tianhong Chemicals Co Ltd.

China Wanda Group, which also owns petrochemical, electric cables and property businesses, has no relation with the conglomerate Dalian Wanda Group.

Hontop last issued a tender in October, said a Singapore-based trader who regularly participates in its tenders. Hontop typically buys Russian, Angolan and Brazilian crude.

Chinese independent refiners, or teapots, account for about 20% of China’s oil imports, but they have recently come under pressure with ample fuel supplies at home and bleak demand due to the coronavirus outbreak weighing on margins.

Reuters reported earlier this week that banks have suspended credit lines for some of these teapots amid rising concerns about overall industrial defaults. (Reporting by Jessica Jaganathan and Chen Aizhu Additional reporting by Shu Zhang and Roslan Khasawneh Writing by Florence Tan; Editing by Himani Sarkar and David Evans)

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