Radiant Cuts More Jobs After Founder Loses Control of Firm

Radiant World is expanding its job cuts beyond its core iron-ore business following a Singapore court's recent takeover of the struggling commodity trader from its founder. The additional lay-offs encompass personnel in base metals operations and execution, according to sources familiar with the situation who preferred anonymity.

These functions had previously been relatively untouched by the company's earlier cuts, which primarily targeted its iron-ore unit. Radiant's base-metals trading division, specializing in refined copper and primary aluminum, functioned largely autonomously from its iron-ore division. Despite recent workforce reductions in other areas, several individuals in this unit remained with the company.

The iron-ore segment has been under scrutiny for alleged provision of falsified documents to secure billions in financing. A Radiant World spokesperson was unavailable to comment on the latest layoffs. The firm has faced increasing pressure after Bloomberg reported in mid-July that major commodity traders like Glencore had severed ties, citing concerns over Radiant allegedly supplying false records of iron-ore transactions to lenders.

Denying any wrongdoing, Radiant asserted it operates with the utmost commercial and legal integrity. In September, a Singapore court designated KPMG restructuring experts to manage the company's primary operation unit in the nation, displacing founder Pinkesh Nahar at Mizuho Bank's behest. Mizuho had filed a lawsuit against Radiant for US$97.3 million (S$124.3 million) in alleged receivables stemming from iron ore sales to Glencore International AG, alleging potential fraud on Radiant's part.

The most recent workforce reductions follow at least two prior rounds since July. Radiant had already shed almost half its iron ore traders in China and Singapore, coupled with departures from its London and Geneva offices, Bloomberg previously reported. The company had also downsized its iron-ore operations staff in China by more than half, with London and Geneva traders largely exiting their positions and ceasing trading altogether.