Singapore-based tanker owner Xihe Group has put a new leadership team in charge as part of an agreement with banks to restructure the company.
Xihe reached an agreement with its lenders to a consensual restructuring of the company after OCBC Bank filed an application to place the company under judicial management, claiming it has lost trust in management citing alleged fraud at the Xihe owner’s affiliate company Hin Leong Trading.
Lim Oon Kuin and his children are no longer part of the management team, which is now headed by interim CEO Kenny Lim. Lim is backed up by commercial director Desmond Chong, sales & purchase director Michael Tan and VP (fleet management) Zhang Yujie. A new board of directors is also being finalised.
Xihe, which owns close to 140 vessels, says a number of bareboat charter contracts with Ocean Tankers and Hin Leong Trading have been terminated. The group is working with the two companies, now under judicial management, to have the vessels redelivered while it pursues opportunities to re-deploy them. It is also looking to downsize its fleet through vessel sales and has already concluded several deals.
“Xihe has been updating its lenders regularly on its strategic plans and the direction it has charted. It is confident of getting its business back on track and with full commitment to bring about the best outcome for all its stakeholders, partners and clients,” the company said in a statement.