Radiant World, a Singapore-based iron ore trading firm, has cut jobs and sold commodity inventories after major banks froze some of its accounts, citing concerns over allegedly falsified documents provided to financial institutions.
The company confirmed in the past week that it laid off several employees across its global offices, primarily within operations. At least five positions were affected, though the total number of job cuts remains undisclosed. The move follows a July 31 report by Bloomberg that several major commodity traders had severed ties with Radiant World amid mounting scrutiny from banks and counterparties.
Deutsche Bank AG and KBC Group NV froze funds in certain Radiant World accounts in Singapore, according to people familiar with the matter. The decision came after lenders raised concerns about documentation submitted by the company, which they alleged contained inaccuracies. Radiant World did not immediately respond to requests for comment on the allegations.
In response to the liquidity squeeze, the company has been liquidating commodity inventories to bolster its cash position following the withdrawal of banking and counterparty support. The extent of the inventory sales and the current liquidity position were not disclosed. The developments underscore the financial strain facing Radiant World as it navigates the fallout from the banking restrictions and fraud concerns.
