O.K. Lim and family agree to pay US$3.5b to Hin Leong liquidators

But they say they lack enough assets to pay all claimants and will apply for bankruptcy

- Grace Leong

In a surprising twist, Hin Leong founder Lim Oon Kuin and his two children, Evan Lim Chee Meng and Lim Huey Ching, have agreed to pay US$3.5 billion (S$4.5 billion) to the liquidators of the now-defunct oil trading firm.

The High Court on Sept 30 also gave the green light to a consent judgment that the Lim family reached with HSBC Holdings, which had sued them and Lim Oon Kuin's personal assistant Serene Seng Hui Choo, for US$85.3 million in damages.

This brings to an end a 50-day civil trial of both cases involving the family of oil tycoon Lim Oon Kuin - also known as O.K. Lim - which had been jointly heard in the High Court.

“This is an important milestone in the liquidation of Hin Leong, and is a victory that belongs to (its) creditors,” said liquidator Goh Thien Phong.

In the judgment reached by both parties, the family will have to pay the sum of US$3.5 billion plus interest at 5.33 per cent per annum from April 2020 to the date of payment - and costs.

But the Lim family said in written statements on Sept 30 that they do not have enough assets to pay all the claimants that have taken legal action against them and will be applying for bankruptcy.