Scandal-hit oil trader GP Global, which is currently undergoing restructuring, is seeking court intervention to stop creditors in Singapore “stealing a march” on banks that are owed millions of dollars, GTR can reveal. Court documents filed by GP Apac – a Singapore subsidiary of UAE-based oil giant GP Global Group – describe how the company ran into financial difficulties during 2020, prompted by pandemic-related disruption, a drop in demand for oil products, record low oil prices and bank nervousness over commodity finance lending. Its chief restructuring officer and sole director, Rod Sutton of FTI Consulting, says evidence then emerged of “irregular commodity trades and/or fictitious trades where there was no actual transfer of any underlying cargo”. “This left the group with significant bad debt as the trade receivables due from these ‘trades’ are unlikely to be recoverable,” he says in an affidavit filed in Singapore’s High Court in February and seen by GTR. According to that document, GP Apac owes more than US$460mn to 20 unsecured lenders, the three largest of which are UBS, Credit Suisse and UniCredit. The company had obtained more than US$1.2bn in trade finance facilities, co-borrowing with other group entities. Once restructuring has taken place and… continue reading
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Source: CTRM Center