Asia/Pacific News
Coastal Oil Singapore Hit By Debt Fraud Allegations
Troubled marine fuel player Coastal Oil Singapore Pte Ltd has been hit with allegations of debt fraud.
In a Friday filing made to the Hong Kong Exchange, Cosco Shipping International (Hong Kong) Co., Ltd said that Coastal Oil Singapore is a major supplier of its indirect wholly-owned subsidiary Sinfeng Marine Services Pte. Ltd., which in turn is a supplier and trader of marine fuel and related products.
In 2017 and H1 2018 over 90% of Sinfeng's bunker spend was with Coastal Oil, it said.
Coastal Oil filed for voluntary liquidation in December and a number of the firm's banks are now looking to recover debts, but Cosco Shipping International says most of the assigned receivables allegedly related to its Sinfeng unit are fraudulent.
"Based on a preliminary assessment, the management of Sinfeng is of the view that the documents in relation to almost all of the Alleged Debts are not genuine," Cosco Shipping International said.
"As at the date of this announcement, Sinfeng is still in the process of conducting an investigation and seeking professional advice in respect of the aforesaid matters."
With Coastal Oil out of the picture, Cosco Shipping International said its revenue would take a hit until it finds alternative suppliers.
"However, in light of the insignificant profit contribution of Sinfeng, the Board currently does not foresee any material adverse impact on the Group as a result of the liquidation of Coastal Oil Singapore," it added.
Two vessels operated by related Coastal Logistics entity Heng Tong Fuels & Shipping, the 24,200 dwt tanker Atalanta and licensed Singapore bunker tanker Coastal Neptune, were arrested last week.
