Chen was suspended last week after disclosing the losses from derivatives trades. He was then arrested on his return from China but charges have not yet been laid.
Singapore’s police, central bank and stock exchange are probing the company’s losses and the sale of shares in China Aviation Oil by its Chinese State-owned parent in October.
China Aviation, which supplies almost all China's jet fuel imports, has asked Singapore's High Court to give it six weeks to present a plan to restructure and repay creditors. The court will decide today whether to extend the deadline, currently set for Dec. 13. Creditors include Mitsui & Co Energy Risk Management, Standard Bank, Sumitomo Mitsui Banking Corp, Fortis Bank SA and Barclay's Capital PLC.
Chen has said his company's parent, China's state-linked China Aviation Oil Holding Co, knew about the mounting losses when it sold a 15% stake in the Singapore-listed supplier for $108 million in October. The buyers were not notified of the company's financial problems.
The Securities Investors Association has said the losses bore the hallmarks of insider trading.
