The Standard Hong Kong newspaper reported yesterday (3 Jan) that banks in Singapore and Hong Kong are likely to suffer huge losses linked to the closure of Singapore petroleum company Coastal Oil Singapore Pte Ltd.
Records from ACRA show that Coastal Oil Singapore Pte Ltd entered liquidation as of Dec 13 last year.
It entered liquidation due to the sharp plunge in oil prices last year.
The liquidation of the company is said to have affected at least 10 banks in both Singapore and Hong Kong for some half a billion Singapore dollars.
DBS Bank and Standard Chartered were among the lenders affected.
It is reported that 60 percent of the company’s loans were offered by Singapore’s banks.