Singapore Tycoon Seeks $1.27B from Banks Over NewSat Collapse

Singapore real estate tycoon Ching Chiat Kwong is pursuing a US$1.27 billion claim against major international banks and credit insurers over the 2015 collapse of Australian satellite company NewSat Ltd., in which he invested US$100 million of his own money. The Supreme Court of Victoria will begin hearing the case on April 20, according to Bloomberg.

The Lawsuit and Parties

The liquidators of NewSat have filed suit against lenders Societe Generale, Credit Suisse (now owned by UBS Group), and Standard Chartered, as well as credit insurers Export-Import Bank of the United States and Coface of France. The allegations center on claims that the lenders failed to honour loan agreements, which prevented NewSat from paying contractors to build and launch a satellite, resulting in lost earnings.

Ching has put the claim at around US$1 billion based on an expert report, accounting for the lost opportunity to launch the original satellite and others planned for the future. However, Standard Chartered reported in its annual report that claimants asserted loss and damage of up to US$4.81 billion.

NewSat’s History and Collapse

In the early 2010s, NewSat attempted to build a fleet of satellites before lenders, concerned about the flamboyant behaviour of founder and chief executive Adrian Ballintine, withdrew hundreds of millions of dollars in financing. The company collapsed in 2015.

According to a defense filing, a 2014 email from consultant Brendan Rudd stated he had never witnessed more appalling corporate behaviour than at NewSat, claiming the firm could not survive with Ballintine leading it, and that the company’s sole purpose appeared to be funding the executive’s lifestyle. The filing also noted that Ching continued to support Ballintine despite being informed of governance issues.

Ballintine rejected these characterizations, stating: “I totally reject his comments about appalling corporate behaviour and that I used the company to fund my lifestyle.”

Ching told Bloomberg that such governance concerns were overblown, arguing that business development often requires lifestyle expenditures to secure large contracts.

Key Legal Contention

A central element of the case, according to Ching, is a document signed by French President Emmanuel Macron, who at the time was a politician overseeing Coface, the credit insurer that covered a portion of the financing package. Ching stated that Macron “actually signed off to stop the funding.” Ching said he has not spoken to Macron but believes contact may occur in the future.

Spokespeople for SocGen, Standard Chartered, and UBS declined to comment. A representative for Macron did not respond to requests for comment. A Coface spokesperson declined to comment.

The banks’ defense, filed through their lawyers, called the allegations against them “vague and embarrassing” and liable to be struck out.

About Ching Chiat Kwong

Ching is co-founder, executive chairman, and CEO of Singapore-listed property developer Oxley Holdings, which he listed in 2010. After completing national service, he worked as an officer in Singapore’s police force before moving into construction. He built his fortune on the premise that Singapore’s rising affluent young class would purchase affordable single-room apartments of 30 to 45 square metres.

Over time, Ching has expanded his wealth into global personal investments, including two vineyards in Tuscany and Palazzo Papadopoli, a 16th-century Venetian palace on the Grand Canal, according to Bloomberg’s review of his assets. His current stake in Oxley Holdings is worth more than US$100 million, though the stock has sharply declined from its peak over the past decade.

Ching’s office features a large gold-framed portrait of a bull and multiple smaller bull sculptures in his boardroom. He explained that he favors bulls because they represent persistence in the Chinese zodiac, and the symbolism aligns with his company’s name, Oxley.