What is Radiant World and why is it in the news?

SINGAPORE, Oct 2 (Reuters) - Iron ore trader Radiant World has been at the centre of a widening crisis since banks and counterparties began distancing themselves over concerns it may have used invalid documents to raise financing.

Radiant World has denied any wrongdoing.

WHAT IS RADIANT WORLD?

The company was founded in the early 2000s by Indian national Pinkesh Nahar, a 45-year-old who until recently was little known outside the niche world of iron ore trading.

With offices in Singapore, Britain, China, India, Switzerland, the US and the United Arab Emirates, it became one of the world's biggest iron ore traders, handling more than 80 million metric tons of the steelmaking raw material annually, according to its website.

More recently, it built up its business trading base metals such as aluminium and copper.

Corporate filings for its main operating entity, based in Singapore, show revenue of $9.6 billion in its financial year ended September 30, 2025.

WHAT IS THE LATEST?

Radiant World faces mounting legal challenges.

This week, New York-based fund Mariner Atlantic Multi-Strategy LLC showed in a US court filing that it had made a criminal complaint in mid-September in Switzerland against Radiant World and related companies alleging fraud and money laundering.

The complaint is related to about $48.6 million that Mariner says it lent to Radiant World in late June that was underpinned by trade receivables.

WHAT OTHER LEGAL CLAIMS HAVE BEEN MADE AGAINST IT?

In late September, a Singapore High Court judge appointed KPMG as interim judicial managers of the Singapore operating entity in a case brought in August by creditor Mizuho Bank.

In appointing KPMG, the judge said interim judicial managers were needed to investigate suspected fraud at Radiant World.

Mizuho in June provided some $100 million in credit to Radiant World that was secured by invoices that a counterparty to the iron ore trader, London-listed Glencore GLEN.L, later said were invalid, Reuters reported, citing documents and a source with direct knowledge of the matter.

Interim judicial managers typically take over management of companies while the court decides whether to appoint a full judicial manager.

A fund linked to US bank Jefferies secured freezing orders against Radiant World as well as Sapphire Minmetals, which used to be part of the firm, from courts in Britain, Singapore and Hong Kong.

The fund, LAM Trade Finance Group II, said it purchased iron ore receivables from firms linked to Radiant World and/or Sapphire, buying the right to be paid by traders such as Glencore and Vitol. But those receivables either did not exist or were not validly assigned, it said in its claim against Radiant World.

Italian bank Intesa Sanpaolo ISP.MI and Deutsche Bank DBKGn.DE have demanded Radiant World repay credit they extended based on documents that counterparties later said were invalid, according to last week's Singapore judgement.

WHAT IS THE GLENCORE CONNECTION?

In early August, Swiss-based commodity trader Glencore said it had booked a provision on its exposure to Radiant World and later said it had stopped all business with it and exited its obligations with the firm.

In September, Radiant World and related entities filed a lawsuit against Glencore in Singapore seeking more than $2 billion in damages over allegations of fraud, breach of contract and conspiracy.

Glencore called Radiant World's claims against it "meritless".

"We have incurred losses and been exposed to risks by Radiant World companies and will take appropriate action," it said on September 15.

Glencore recently suspended its head of iron ore trading Peter Hill pending a review of its historic business activities with Radiant World, Sapphire Minmetals and associated companies, according to a source familiar with the matter.

WHAT DOES RADIANT WORLD SAY?

"Radiant World rejects, in the clearest terms, the allegations of wrongdoing that have been made against it and the companies associated with it," it said on its website.

"This is, and has always been, a commercial dispute arising out of a genuine and longstanding trading relationship."

WHAT OTHER FALLOUT HAS THERE BEEN?

Singapore police said in August they were investigating Radiant World after receiving reports about the company, without giving further details.

Some steelmakers in China, the world's biggest metals consumer, have ceased dealing with Radiant.

Some Radiant World staff have left the firm, including its head of China iron ore.

Broker Marex has frozen Radiant World's accounts, Reuters reported in August.