HSBC seeks judicial management for Singapore oil trader Zenrock: sources

[SINGAPORE] HSBC Holdings has filed an application to the Singapore High Court to place Zenrock Commodities Trading under judicial management, three people familiar with the matter said on Wednesday.

Singapore-based Zenrock Commodities trades crude, oil products and petrochemicals.

Under judicial management, an independent judicial manager is appointed to manage the affairs of a company.

HSBC declined to comment. Zenrock did not immediately respond to requests for comment.

On April 23, Reuters reported that Singapore-based oil traders ZenRock and Winson Group issued statements to clients to reassure stakeholders that their companies are not under financial duress after global oil and fuel prices slumped.

ZenRock and Winson have no open account sales or receivables with Hin Leong or any of its associated companies, they had said in the statements seen by Reuters then.

Hin Leong Trading, one of Asia's largest oil traders, has revealed hundreds of millions of dollars of losses.

ZenRock said it is working through adverse conditions created by slumping oil demand and the coronavirus outbreak.

It is not "under statutory restructuring/insolvency protection", ZenRock said in its statement.

"Rumours of ZenRock filing for Section 211B protection ...(are) categorically untrue," ZenRock said in an emailed response to Reuters on April 23.

ZenRock trades crude, oil products and petrochemicals and has offices in Singapore, Shanghai and Geneva.

Winson Group said in its statement: "We hereby declare and confirm that out financial position remains healthy and liquid."

REUTERS