China Aviation loses US$550m trading oil
1 December 2004
China Aviation Oil (Singapore) Ltd, the Singapore-listed supplier of one-third of China's jet fuel, announced it was seeking court protection from creditors after racking up US$550 million in losses from derivatives trading. Trading in the company's shares was suspended Tuesday and the company said it would propose a plan to creditors to stay in business. The loss is not far short of the company's US$570 market value. China Aviation's parent company, state-owned China Aviation Oil Holding Co., has given a US$100 million emergency loan to cover some of the losses. It has also approached Temasek Holdings Pte. Ltd., the Singapore state investment agency, to help restructure the Singapore unit.