In the latest dispute, the Singapore branch of CIMB alleges that Hontop, which is wholly-owned by China’s Wanda Holding Group Co., conducted “suspicious” trades involving two Russian oil cargoes that the bank had financed, according to a Singapore court document seen by Bloomberg.
(July 9): Malaysia’s CIMB Bank Bhd. has accused Singapore-based Hontop Energy of “suspicious” oil deals as it seeks a restructuring of the trader and to recover funds lent to the group in the latest legal skirmish in the trading hub.
Banks that finance commodities trading in Singapore have found themselves with sizable exposures to failed traders as the market downturn crushed the value of collateral, exposing financial shortfalls and sparking accusations of fraud and dishonest dealings. Hontop went into receivership in February and applied in March for court protection for six months from winding up actions.
