SINGAPORE: Winson Oil Trading Pte Ltd has started legal proceedings against Standard Chartered Bank (Singapore) Ltd to claim at least US$30.4 mil (RM130 mil) in payment for a diesel cargo it sold to Hin Leong Trading Pte Ltd, court documents showed.
The case is among several disputes between counterparties of Hin Leong and banks on payment issues arising from oil deals with the Singapore-based trader, which has been placed under judicial management to restructure billions of dollars of debt.
The court documents show that Winson Oil sold an ultra-low sulphur diesel cargo to Hin Leong and had received a letter of credit (LC) from Standard Chartered on April 2, a common financial structure in oil dealings.
Winson Oil presented the LC to Standard Chartered via Credit Agricole Corporate and Investment Bank but Standard Chartered did not make the payment, due in May, Winson Oil says in the documents.
Winson is also seeking damages, interest and costs from Standard Chartered.
Standard Chartered declined to comment. Winson Oil and Credit Agricole did not immediately respond to requests for comments. – June 17, 2020, Reuters
