Iron ore trader Radiant World is reportedly undergoing further layoffs as it grapples with severe financial and legal difficulties. The company has already seen significant staff reductions, particularly in its Dubai operations, following allegations of invoicing improprieties. These new job cuts are occurring amidst a backdrop of suspended credit lines from major lenders and freezing of accounts by institutions like Deutsche Bank, KBC Group, and Marex Group.
The firm is facing a $500 million lawsuit in London from a Jefferies Financial Group Inc. fund, which alleges a "fraudulent scheme" involving falsified iron ore invoices. This lawsuit led to a worldwide freezing order against Radiant World and its founder, Pinkesh Nahar, limiting Nahar's weekly spending to £4,000 (approximately $5,400). Additionally, Mizuho Bank provided about $100 million in credit to Radiant World in June, which was secured by invoices that a counterparty later deemed invalid.
The Singapore police are investigating Radiant World following reports made against the company. In an effort to raise cash, Radiant World has sold a substantial portion of its aluminum inventory to STG, a trading company backed by Squarepoint. The company, which previously stated it employed over 100 people across various global offices and traded over 80 million tonnes of iron ore annually, has described the allegations of wrongdoing as "inaccurate and unsubstantiated."
