[SINGAPORE] China Wanda Group, the parent company of Singapore-based Hontop Energy, is close to settling the troubled oil trader's disputes with two of its major lenders, according to people familiar with the negotiations.
Shandong-based conglomerate China Wanda is in advanced talks with DBS and Societe Generale , and has agreed to pay the outstanding debts on behalf of Hontop Energy via its other subsidiaries, said the people, who asked not to be identified as the talks are private. Banks have been struggling to collect debts from failed commodities traders after oil's collapse exposed financial shortfalls and sparked accusations of fraud and dishonest dealings. If successful, the Hontop deal could mark the first significant settlement amid a wave of disputes this year between trading houses and their lenders.
Hontop, which went into receivership in February, was placed under judicial management earlier this month by a Singapore court. Its outstanding debts totalled US$469 million to seven lenders as of February, of which US$33.2 million was to DBS and US$63.3 million to SocGen, a general manager at Hontop said in an affidavit.
SocGen said by email Thursday that it's"not in a position to comment", while DBS declined to comment. Emailed inquiries to Wanda Group and Hontop's judicial manager, RSM Corporate Advisory, went unanswered.
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