Singapore authorities have launched an investigation into Hin Leong Trading, the greatly indebted oil trader that accepted to $800m of undisclosed losses and filed forbankruptcy security.

The probeled because of the authorities commercial matters division comes because lenders scramble to reduce their contact with the troubled team.

ABN Amro is the most recent loan provider to look for to restrict its losses, processing statements againstHin Leong associated with irrevocable letters of credit it granted toward organization, according to filings toSingapores Accounting and Corporate Regulatory Authority on Friday. Socit Gnrale in addition made statements resistant to the company the other day.

The French and Dutch banking institutions tend to be among above 20 lenders confronted with Hin Leongs debts of $3.85bn. HSBC gets the biggest publicity at $600m, followed closely by ABN at $300m, while SocGen features lent the business $240m.

ABN and SocGen declined to review.Hin Leongfiled for personal bankruptcy defense on Friday after failing to attain an understanding featuring its loan providers on a debt moratorium.

In a filing to Singapores High legal, creator Lim Oon Kuin stated he previously directed the companys finance department not to disclose $800m of lossessustained in futures markets.

Hin Leongs problems have shaken the commodity trading hub of Singapore, where billionaire Mr Lim who started the business enterprise in 1963 with an individual vehicle supplying diesel to regional anglers is just one of the best-known figures on the market.

Hin Leong, family members delivery business Ocean Tankers, Mr Lim and his business director son Evan Lim would not instantly answer needs for opinion. Rajah & Tann, among Hin Leongs appropriate advisers,said it was incapable of comment since the matter was before the process of law.

With Singapores process of law just sitting for immediate and vital cases due to the south-east Asian city-states coronavirus limitations, it is really not obvious whenever Hin Leongs bankruptcy petition is going to be heard.

The companys lenders have appointed Drew and Napier, one of Singapores leading law offices, to express all of them and also have held talks with Mr Lims advisers on next tips.

According to people with knowledge of the specific situation, the finance companies are expected to oppose Hin Leongs personal bankruptcy filing and ask Singapores High Court to appoint a completely independent third party to run the company, a procedure called judicial administration, while they make an effort to restructure its financial obligation.

Theres no way lenders will want Evan Lim working e-commerce, one attorney stated.

Hin Leong's lenders may expected to drive for judicial management at Ocean Tankers, which includes additionally recorded for bankruptcy security and it is run by Evan Lim.

In a courtroom document seen because of the Financial days, Evan Lim said Ocean Tankers faced possible liabilities as much as $2.67bn in respect of positions entered into by Hin Leong.

all of the oil traded by Hin Leong ended up being continued ships run or chartered by Ocean Tankers.

Deloitte which was appointed Hin Leongs auditor in 2003 and signed off on the monetary statements that Mr Lim stated failed to capture losings couldn't respond to needs for comment.

Additional reporting by Stephen Morris and Nicholas Megaw in London