THE founder of the now-collapsed Singapore-based oil trader Hin Leong, Lim Oon Kuin, has been declared bankrupt.

His two children, Lim Huey Ching and Lim Chee Meng, both directors of the company, have also been issued with a bankruptcy order, according to a government gazette.

Leow Quek Shiong and Seah Roh Lin from BDO Advisory Pte are the appointed trustees.

This development follows the sentencing of the elderly Lim — better known as OK Lim — to 17 and a half years in prison by a Singaporean court in mid-November.

The 82-year-old was found guilty of cheating global bank HSBC by falsely claiming that Hin Leong had entered into two contracts to sell oil to China Aviation Oil and Unipec Singapore, subsequently applying for discounts against these deals.

Lim is appealing the conviction and sentence and his bail of $4m has been extended.

Hin Leong was accused of concealing more than $800m in losses from unrecorded futures trading, resulting in significant liabilities for more than 20 banks.

In September, Singapore’s High Court approved Lim’s agreements to pay liquidators and creditor HSBC Holdings nearly $3.6bn to resolve the civil case against him.

However, Lim stated that he did not have sufficient assets for repayment and planned to file for bankruptcy.

Hin Leong’s shipping affiliate, Ocean Tankers, once operated a fleet of around 150 vessels, including smaller product tankers and tugs for Singapore’s fuel oil and bunker sector, where it was a leading player.

The fleet, which also included very large crude carriers and long range two or aframax tankers, have been gradually sold off over the past few years.