Mizuho Bank files case against Radiant World in Singapore

Japan's Mizuho Bank Ltd has initiated legal proceedings against the Singapore operating entity of iron ore trader Radiant World in the country's Supreme Court. Court records indicate Mizuho Bank is seeking an injunction against Radiant World Corporation, though the specific terms of the injunction remain undisclosed. The court filing was made public on Friday.

In addition to the case brought forth by Mizuho Bank, Singapore-based trade-finance firm Incomlend has also filed a lawsuit against Radiant World and its founder, Pinkesh Nahar, demanding $34 million, according to Bloomberg News. The news agency cited a court document for this information.

Recent events have led to banks freezing Radiant World's accounts and trading partners severing business ties over suspicions that the commodity trader provided fraudulent invoices to secure financing. The Singapore Police confirmed that investigations into these allegations are currently underway. Mizuho Bank has not provided a statement regarding the legal action, while Incomlend has yet to respond to a request for comment.

Radiant World, for its part, has not returned a request for comment. In July, the company issued a statement dismissing the claims as inaccurate and unsubstantiated. Pinkesh Nahar founded Radiant World in the early 2000s, and the company's website states that it trades over 80 million metric tonnes of iron ore annually each year.

Prior to this story, reports emerged in August suggesting Deutsche Bank and KBC Group had frozen specific bank accounts and suspended credit lines for Radiant World.