Zenrock is active in the fuel oil market in Singapore. File Image / Pixabay
A second Singapore commodity trader has entered a legal battle with its lenders, according to news agency Bloomberg, with HSBC filing an application to put Zenrock Commodities under judicial management.
In an application filed to Singapore's High Court on Monday, HSBC claims Zenrock used the same cargo as collateral to secure credit multiple times, Bloomberg reported Wednesday, citing people familiar with documents filed to the court in support of the application.
ZenRock is active in fuel oil trading as well as several other commodities. The company has yet to make official comment on the situation, and representatives were not immediately available to comment when contacted by Ship & Bunker.
HSBC was also one of the main lenders to Singapore-based Hin Leong, which has reportedly struggled to raise new letters of credit from its lenders and has been put under the interim judicial management of accountancy firm PricewaterhouseCoopers.