Radiant World cuts more jobs as legal challenges mount
It has reportedly lost almost half its China and Singapore iron ore traders.
Radiant World and Sapphire Minmetals, iron ore trading companies facing fraud allegations, have reduced their workforce in Asia and Europe. Radiant World has shed nearly half of its China and Singapore iron ore traders, with additional departures from London and Geneva offices. Sapphire Minmetals has also cut operations in China and Singapore.
Some staff have been terminated, while others have resigned. Sapphire's chairman, Rakesh Sethi, announced a halt in new trading business while addressing legal disputes. Both companies are under a $499 million freezing order issued by a London court, stemming from accusations of falsifying iron ore invoices. Radiant World is also facing a lawsuit in Singapore by creditors Incomlend and Mizuho Financial Group.
The companies claim to have incurred losses exceeding $2 billion due to alleged actions by Glencore, a former major backer. The layoffs represent the second round since July, with Radiant World now operating with half the iron ore traders and staff it had in China in August. While some staff remain at Radiant World's metals unit, base metals traders are leaving the company.
Sapphire Minmetals has also reduced its workforce, retaining only a few traders in Beijing. Sethi stated that some Chinese buyers attempted to offer below-market prices, prompting the company to pause active trading.
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Also reported by 1 other outlet
- Radiant World Cuts More Jobs as Legal Challenges Mount bloomberg.com
