The Beijing-backed company stressed the move to put Greater China Travel Industry (GCTI) under liquidation would not affect its ongoing restructuring, triggered by US$550 million of losses in derivatives trading.

"The (company) board has resolved that GCTI be placed in voluntary liquidation as part of the winding down of the non-core businesses of the company," Singapore Exchange-listed China Aviation Oil said in a statement.

"The board is of the view that GCTI does not form a critical component in the restructuring efforts of the company going forward and the liquidation of GCTI will have no impact on the existing restructuring efforts of the company," it said.

China Aviation Oil was a favorite with stock punters until it sought court protection from creditors in November last year after revealing its losses.

It was Singapore's biggest business scandal since the collapse of British merchant bank Barings in 1995 after young trader Nick Leeson tried to hide more than US$1 billion in losses from financial derivatives trading.

China Aviation Oil's suspended chief executive, China-born national Chen Jiulin, was charged with 15 counts of cheating and forgery while running the jet fuel trader.

Four other China Aviation Oil executives were also charged in connection with irregularities leading to the company's near-collapse.

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