Five top China Aviation Oil (Singapore) Corp (CAO) executives face up to seven years each in prison and maximum fines of S$250,000 ($1.16 million) if convicted on forgery and fraud charges related to the company's collapse late last year. All five are accused of falsifying company documents and covering up losses totalling US$550 million in the biggest trading scandal to hit Singapore since the 1995 demise of Barings Bank. Disgraced former chief executive Chen Jiulin and the president of parent company China Aviation Oil Holding, Jia Changbin, are also charged with insider trading. Chen faces 15 separate charges, 13 of which carry a seven-year sentence, while Jia faces three charges, two carrying the same sentence. Singapore authorities arrested the five on Wednesday, soon after Jia and company director Li Yongji arrived from Beijing to attend a creditors' meeting. As they awaited their fate in jail, creditors approved a restructuring package to save the firm from bankruptcy. The two countries lack an extradition treaty but Singapore is unlikely to have arrested the president of China's main jet fuel importer without Beijing's tacit approval. According to a source in the company, Li, Jia and the head of the company's restructuring taskforce Gu Yanfei were released on bail and applied to leave Singapore. Gu's request was granted and last night she was preparing to leave for the US, where CAO faces a class action suit from a group of shareholders. CAO's finance head Peter Lim stays in jail with Chen, whose bail has been set at S$2 million. Three of the more serious charges against Chen relate to statements posted on the website shareinvestor.com in August last year. In his postings, he predicted record profit growth and said the company stood to benefit from rocketing oil prices, when it had already lost well over US$100 million in speculative options trading. Company sources said they raised concerns with Chen but were told to carry on business as usual. 'We called the market wrong, but he [Chen] instructed us to keep rolling the options and we obeyed him,' said a CAO trader on condition of anonymity. The court alleges that Chen and the other directors concealed losses in company reports to preserve the share price right up until the firm filed for protection from creditors in November last year. In a final attempt to avoid bankruptcy, Chen and Jia tried to transfer trading losses to the parent firm, despite mainland laws forbidding speculative derivatives trading by state-owned enterprises. CAO staff described Chen as an 'authoritarian but charismatic' figure who had built the business from scratch into a listed company with a market capitalisation of US$560 million. The feeling in the company is that Chen will be convicted and serve jail time but that the other managers might merely be fined. At a meeting on Wednesday, creditors approved a restructuring package returning 56.6 US cents for every dollar owed. CAO continues to operate through a subsidiary.