A Singapore court has appointed judicial managers from Deloitte to take control of Radiant World's operations. This decision follows an application by Mizuho Financial Group, which accused Radiant World of fraud and expressed serious concerns about the integrity of its board and leadership. The ruling effectively strips founder Pinkesh Nahar of control, a move he had opposed, arguing the company remained solvent. The court's decision was made on Thursday afternoon, after a hearing on Wednesday.
The case centers on Radiant World's balance sheet, which lists over $1 billion in trade receivables, with the top ten largest receivables accounting for 94% of this total. A significant portion of these receivables, approximately $329 million, is reportedly owed by obscure UAE entities like Milla Sky and Thinkertech General Trading. Furthermore, $298 million is listed as owed by companies closely connected to Radiant World, such as Quanterra International and Sapphire Minmetals.
Several counterparties and lenders have raised doubts about these assets. Glencore International AG, listed as the largest debtor at $150.4 million, has filed a notice to offset money it owes against money Radiant World owes it, and has dismissed a Radiant lawsuit as "meritless." Similarly, Vitol Asia, with a $100.7 million receivable, is named as a major debtor. Mizuho's own exposure is around $95.5 million, stemming from financing arrangements underpinned by invoices it now alleges were fraudulently generated for transactions with Glencore that did not exist. LAM Trade Finance Group II, a Jefferies fund, which secured a worldwide freezing order against Nahar limiting his spending to £4,000 ($5,400) a week, has also accused Radiant World of a "very serious, very large and very complicated fraud," suggesting many supporting documents were falsified. Other creditors include Intesa Sanpaolo with €200 million, Deutsche Bank with $102.6 million, Mariner Investment Group with $48.6 million, and Incomlend with $34 million. The appointment of judicial managers is seen as a crucial step in unraveling the financial discrepancies and addressing potential losses for lenders in the trade finance sector.
