Ocean Tankers has applied to the Singapore court to return most of its managed vessels to their owners due to mounting costs and dwindling cash reserves, reports Reuters.
The move, if approved, would allow the company to focus on its oil lubricants business, which is currently undergoing a sales process. Ocean Tankers is the chartering arm of troubled oil trader Hin Leong.
Ocean Tankers, Hin Leong, Xihe Holdings and four special purpose vehicles owned by tycoon Oon Kuin Lim and his children are under judicial management following Hin Leong's US$4 billion debt collapse.
Judicial manager EY said the firm is spending US$540,000 daily to maintain around 150 vessels, most of which were chartered from the Lim family. EY warned that by early November, Ocean Tankers would not have enough funds to sustain fleet operations or its lube plant and terminal business.
EY declined to comment, citing client confidentiality. PwC, the Lim family and their legal representatives did not respond to requests for comment.
The vessels are incurring costs without generating income. One source said judicial managers are working to preserve the lubricants business.
The Lim family, sued by Hin Leong's judicial managers, has reportedly lost interest in restructuring Ocean Tankers and proposed liquidation on September 30.
https://www.shippingazette.com/news?news_id=9251000000759
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