SINGAPORE (Reuters) – Singapore oil dealer Hin Leong Buying and selling (Pte) Ltd, which has begun talks with lenders to increase its credit score amenities, owes $3.85 billion to 23 banks, two business sources stated on Thursday. FILE PHOTO: Pipelines run down the deck of Hin Leong’s Pu Tuo San VLCC supertanker within the waters off Jurong Island in Singapore July 11, 2019. Image taken July 11, 2019. REUTERS/Edgar Su/Fiel PhotoThe coronavirus pandemic has led to an unprecedented stoop in gas demand and hammered oil costs, making it tough for buying and selling companies to make a revenue. Hin Leong is without doubt one of the largest gas merchants in Asia and an operator of a significant tanker fleet. Among the banks held a name with Hin Leong and its advisers on Tuesday to debate methods to offer short-term commerce finance after some banks failed to offer the agency with a letter of credit score to purchase oil merchandise. “Hin Leong has requested for an extension (to repay collectors),” one of many sources with direct information of the matter stated. Hin Leong didn’t reply to Reuters’ electronic mail and telephone calls looking for remark. The agency’s largest lenders embrace HSBC Holdings, DBS, Abroad-Chinese language Banking Corp, Financial institution of China, Societe Generale and Commonplace Chartered, stated the second supply, who was briefed on the discussions. Societe Generale on Tuesday lodged a “common cost of receivables and contract rights” on Hin Leong with Singapore’s Accounting and Company Regulatory Authority (ACRA). A cost is a type of safety curiosity often taken by a lender or creditor to safe compensation of a mortgage, in line with ACRA’s web site. A spokeswoman for Societe Generale confirmed that it was a lender to Hin Leong however declined to remark additional. Individually, Hin Leong owed Financial institution of China about $200 million, a 3rd supply with information of the matter stated. All sources spoke on situation of anonymity given the sensitivity of the matter. HSBC, DBS, OCBC, Commonplace Chartered and ABN Amro declined to remark, whereas Financial institution of China didn’t instantly reply to requests for remark. FUEL TRADING Hin Leong’s gas buying and selling has been affected by its monetary points, different business sources stated. The corporate cancelled some oil merchandise contracts for April cargoes as a result of it had been unable to get banks to situation letters of credit score, three sources with information of the matter stated. At the least two of the offers had been struck in the course of the Market on Shut (MoC) course of by pricing company S&P World Platts, the sources stated. Hin Leong was an energetic participant in the course of the MoC processes for oil merchandise in Asia up till final week, commerce knowledge confirmed. Below Platts’ methodology, a confused get together might request to withdraw from a commerce, however its counterparty is underneath no obligation to just accept such a request, Platts stated, including that the company expects to be told ought to this happen. Platts, which assesses each day oil costs based mostly on the MoC offers, stated all their value assessments are accomplished based mostly on the data accessible on the time of evaluation. They usually don’t appropriate assessments based mostly on contemporary data supplied after the very fact, the company added. Platts declined to touch upon whether or not Hin Leong has been placed on evaluate, which excludes an organization from buying and selling in the course of the MoC processes for causes starting from credit score points to commerce disputes to cargo technicalities. Hin Leong’s bunker gas subsidiary Ocean Bunkering Companies Pte Ltd (OBS) has additionally knowledgeable some prospects that it plans to droop marine gas deliveries from as quickly as Friday, bunker merchants stated. OBS was the third-largest bunker gas provider by quantity in Singapore in 2019. The transfer comes as demand for marine gas has slumped because of a slowdown in world delivery exercise amid the coronavirus outbreak. OBS owns a devoted fleet of 14 Maritime and Port Authority of Singapore licensed bunker barges, in line with the corporate’s web site. It equipped about Three million to four million tonnes of bunkers in 2019, in line with estimates by business sources. Reporting by Roslan Khasawneh, Jessica Jaganathan, Chen Aizhu and Anshuman Daga; further reporting by Koustav Samanta and Seng Li Peng; writing by Florence Tan; modifying by Richard Pullin and Himani SarkarOur Requirements:The Thomson Reuters Belief Rules.