SINGAPORE: The chairman of embattled China Aviation Oil (CAO) Singapore has arrived in Singapore to aid investigations even as the failed oil trader appealed for more time yesterday to put together a rescue plan.

A source familiar with the situation told Reuters that Jia Changbin was in Singapore and had met the financial regulators.

"He is in town and has been meeting with Singapore Exchange officials on Monday," the source said.

Singapore Exchange officials were not immediately available for comment.

Jia is also the president of Beijing's State-owned China Aviation Oil Holding (CAOH), the parent of CAO, which holds the monopoly on the import of jet fuel into China.

Gerald Woon, a representative for CAO Singapore, confirmed that Jia was in town but gave no further details.

CAO Singapore's suspended chief executive, 43-year old Chen Jiulin, a key figure in the debacle, who left Singapore abruptly for his native China a day after the firm announced its losses last Tuesday is also due back in Singapore some time this week.

Woon said he had no information on when Chen would arrive.

CAO Singapore also said it had applied to Singapore's High Court yesterday for a six-week extension to file an affidavit for a proposed scheme of arrangement and for the creditors' meeting to be convened within six months.

The Singapore-listed firm, which is 60 per cent owned by CAOH, said it would announce the outcome of its application which would be reviewed by the court on December 10.

CAO Singapore shocked financial markets last week by announcing a US$550 million loss from speculative oil trading and filed for court protection from creditors.

The losses easily exceed CAO Singapore's last reported shareholder equity of S$236 million and equal the firm's last traded capitalization.

"Technically the company is now worthless unless the creditors are willing to take a haircut. A lot depends on the arrangement that can be reached with the creditors," said Seah Hiang Hong, head at brokerage Kim Eng Research.

Regulators, including the Monetary Authority of Singapore and the Commercial Affairs Department (CAD), have started investigating the firm's problems, including a share sale by the parent through Deutsche Bank in October before CAO Singapore unveiled the losses.

The same source said China's Premier Wen Jiabao had asked for a report on the investigations.

Earlier, CAO Singapore said key officials from the firm had submitted their passports to CAD, Singapore's white collar crime unit, and were assisting investigations.

Woon confirmed four executives, including the deputy heads of trading Gerard Rigby and Abdallah Kharma, had given up their passports.

Analysts said global investors were watching closely how Beijing would handle the CAO case.

"It will have implications for other Chinese State firms seeking listings aboard," said an investment banker.

Several Chinese State banks, including Bank of China, have announced multi-billion dollar stock listing plans in 2005.

(HK Edition 12/08/2004 page15)