Oil trader ZenRock under more than $850.5m in debt: report

The trader owes $235.45m to at least six banks.

Singaporean oil trader ZenRock owes more than $850.5m (US$600m) to various banks and creditors, the company revealed in a court filing seen by Reuters.

In its application for moratorium relief—a form of bankruptcy protection—the trader stated that it owes $235.45m (US$166.1m) to at least six banks and $636.46m (US$449m) with at least ten unsecured creditors.

ZenRock said that it ran into financial difficulties as the oil price collapse and coronavirus disrupted trading just after it had expanded its sales and back office operations last year.

Also read: HSBC to put Singapore trader Zenrock under judicial management

“ZenRock is now in financial difficulties for the following broad reasons,” the trader said in the application, listing ‘severe disruption’ to trade caused by the coronavirus, a ‘steep and sustained decline in crude oil prices’ and a tightening credit market ‘exacerbated’ by banks’ increased caution.

Late last month, ZenRock issued a statement to reassure clients that it was not under financial duress after global oil and fuel prices slumped.

Here’s more from Reuters.