Radiant World lays off staff as lenders back away, sources say
Radiant employs more than 100 people, according to its website.
Radiant World, a Singapore-based iron ore trader, has announced the layoff of some operations staff due to lenders and counterparties withdrawing credit, according to sources familiar with the situation. The firm's ability to fund its trades has been significantly affected by negative headlines concerning invoicing and document improprieties, leading to the hiring cuts.
While the exact number of layoffs remains undisclosed, Radiant employs over 100 people across various offices globally. The Singapore police have received reports about the company and are investigating the allegations. Major banks such as Deutsche Bank and KBC Group have frozen some of Radiant's Singapore bank accounts, and several lenders have suspended credit lines.
Marex Group, a commodities broker, has also frozen all of Radiant World's accounts following the allegations. To generate cash, Radiant has sold a significant portion of its aluminium inventory to a trading company backed by principals of the US hedge fund Squarepoint. Founded in the early 2000s by Pinkesh Nahar, Radiant World specializes in trading over 80 million tonnes of iron ore annually, generating revenue exceeding US$7.5 billion at current SGX prices.
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