April 27, 2020 / 4:00 AM / a month ago

Sembcorp says unit begins proceedings against Hin Leong affiliate over gasoil

(Reuters) - Sembcorp Industries on Monday said its Sembcorp Cogen unit had begun legal proceedings to assert ownership over some gasoil reserves stored in tanks at Singapore’s Universal Terminal, partly owned by oil trader Hin Leong Trading Pte Ltd.

Just last week, Sembcorp Cogen terminated its gasoil supply and storage agreement with Hin Leong Trading, which is being monitored by Singaporean authorities.

Sembcorp Cogen on April 24 obtained a court order to restrain Universal Terminal from moving, removing or disposing of any of the gasoil reserves it claims, and to ensure that the reserves are stored separately from any other gasoil, the parent company said in a statement issued on Monday.

“There is a possibility that the reserves designated for Sembcorp Cogen may be subject to competing claims by one or more third parties,” Sembcorp Industries said in the statement.

Last week, Hin Leong applied for a court-appointed supervisor to manage the company and restructure billions of dollars of debt owed to multiple banks.

Hin Leong’s founder Lim Oon Kuin and his family own 41% of the Universal Terminal through Universal Group Holdings Pte Ltd. PetroChina holds 25% and Australian investment bank Macquarie the remaining 34%.

Hin Leong didn’t immediately respond to a request for comment.

Reporting by Rashmi Ashok in Bengaluru and Florence Tan in Singapore; Editing by Tom Hogue and Kenneth Maxwell

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