Sembcorp Industries settling lawsuit against OK Lim, his children for US$50.9 million
Source: Business Times
Article Date: 02 Oct 2024
Author: Tay Peck Gek
The consent order – subject to formal approval of the court – will have the Lims settle the claims without admission of liability.
A Sembcorp Industries subsidiary will be settling its legal claims against Hin Leong Trading founder Lim Oon Kuin and his children for US$50.9 million, the renewable and low-carbon energy player announced in a regulatory filing on Tuesday (Oct 1).
Sembcorp Cogen, a wholly owned subsidiary of Sembcorp Industries, has accepted an offer to settle and to enter a consent order for claims for gasoil that it purchased from Hin Leong Trading and stored with Universal Terminals.
The consent order – subject to formal approval of the court – will have the Lims settle the claims without admission of liability.
Lim – the former Singapore oil tycoon better known as OK Lim – and his children, Evan Lim and Lim Huey Ching, agreed on Monday to pay US$3.5 billion to the court-appointed liquidators of the company and top creditor HSBC.
The Business Times understands that OK Lim and his children reached out to all the creditors on Sep 20, offering to accept the claims currently filed against them. The list of creditors includes some 23 banks which are owed almost US$4 billion by OK Lim, as well as Sembcorp’s power generation subsidiary, Sembcorp Cogen.
The Lims will be applying for bankruptcy, as the assets frozen by the Mareva injunction are insufficient to pay off the US$3.5 billion plus interest and costs.
Notwithstanding the settlement, the legal claims against Universal Terminals will not be discontinued, said Sembcorp Industries.
Due to the uncertainty of recoverability of the amounts against the Lims, the settlement is not expected to have a material impact on Sembcorp Industries’ earnings per share and net tangible assets per share for FY2024.
Sembcorp Industries shares closed 0.5 per cent or S$0.03 lower at S$5.51 on Tuesday, before the announcement.
Source: Business Times © SPH Media Limited. Permission required for reproduction.
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