30-9-2024 (SINGAPORE) Former oil magnate Lim Oon Kuin, widely known as OK Lim, and his two children have agreed to a $3.5 billion judgment against them, marking a significant development in one of Singapore’s most high-profile financial scandals.
The 82-year-old Lim, along with his daughter Lim Huey Ching, 57, and son Evan Lim Chee Meng, announced on Monday their intention to file for bankruptcy, citing insufficient assets to settle their debts. This decision comes amidst an ongoing civil trial brought by liquidators of Hin Leong Trading, Lim’s now-defunct oil firm.
The consent judgment, which effectively concludes the trial proceedings, represents the full amount of Hin Leong’s unsecured debts as of April 2020. However, the actual recoverable sums are likely to be significantly less, with funds potentially coming from assets reclaimed through Singapore’s Insolvency & Public Trustee’s Office.
Hin Leong’s collapse sent shockwaves through the oil trading industry when it was revealed that the company had concealed approximately $808 million in losses from futures and swaps between 2010 and 2020. The liquidators allege that these losses were hidden by overstating profits by $2.1 billion during the same period.
In separate statements, the Lim family members maintained their denial of the civil claims against them but cited various reasons for consenting to the judgment. OK Lim, who was convicted of cheating and forgery in a separate criminal trial earlier this year, expressed his desire to focus on appealing his criminal conviction and pursuing another civil suit.
“While I continue to deny the claims, I do not wish to take up any more of the court’s time and resources,” Lim stated, adding that he had offered to consent to judgment without admission of liability to all claimants.
Lim Huey Ching, who faces a criminal charge for obstructing justice, cited the toll of protracted legal proceedings on her health as a factor in her decision. Similarly, Evan Lim stated his intention to concentrate on a separate claim he is pursuing with his father.
The consent judgment has been hailed as a victory by the liquidators of Hin Leong. Goh Thien Phong, speaking on behalf of the liquidators, described it as “an important milestone in the liquidation of Hin Leong” and thanked creditors for their support throughout the process.
