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HSBC Among Banks With Grim Chances to Recoup Hin Leong Loss

  • Auditors say Hin Leong’s assets can only cover 7% of debts
  • Singapore trader inflated assets by $3 billion, report shows
The HSBC Building, left, stands next to commercial buildings in Singapore.

The HSBC Building, left, stands next to commercial buildings in Singapore.

Photographer: Brent Lewin/Bloomberg
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The prospects for HSBC Holdings Plc and other banks to recover losses from a failed Singapore oil trader are dimmer than originally thought after an accounting review found the energy firm overstated assets by $3 billion and fabricated documents on a “massive scale.”

Hin Leong Trading (Pte) Ltd. has assets of about $257 million, or 7% of its estimated $3.5 billion in liabilities, the company’s interim managers said in a report to Singapore’s High Court on Tuesday. That’s less than half the assets estimated by founder Lim Oon Kuin and his son Evan Lim, according to earlier affidavits to the court.