Ocean Tankers to give most ships back to their owners
As cash is running low, the court-appointed manager for Ocean Tankers Pte Ltd has applied to the Singapore court to return most of the ships that the company operates to the shipowners.
If successful, the move would allow Ocean Tankers, the embattled oil trader Hin Leong Pte Ltd's chartering arm, to restart its cash-generating business, such as its oil lubricants business, for which a sales process is underway, the sources told Reuters.
The Singapore High Court placed Ocean Tankers, Hin Leong, Xihe Holdings and four special purpose vehicles under judicial management for restructuring after Hin Leong had accumulated nearly $ 4 billion in debt.
Ocean Tankers is spending $540,000 a day to maintain about 150 ships, the sources said, citing the update sent to creditors and other stakeholders last week by judicial manager EY. These vessels, mainly operated by the Lim family, were chartered by Ocean Tankers until they ran into financial problems.
Maritime Business World