A Singapore court appointed KPMG restructuring executives to take control of Radiant World on Sept 24, granting an application by creditor Mizuho Bank, which has accused the trader of an alleged fraud linked to iron ore receivables.
The KPMG executives Toh Ai Ling, Adrian Chan and Tan Yen Chiaw will be interim judicial managers of Radiant World Corporation, the trader’s key operating entity in the country, according to people familiar with the decision, speaking after a court conference.
Under judicial management, an independent manager is appointed by the court to take control of a company in financial distress, with the aim of rehabilitating it or allowing the creditors to reach a compromise. Interim judicial management is a step typically taken by creditors as they seek to preserve assets.
KPMG, Mizuho and Radiant World did not immediately respond to requests for comment. Mizuho’s lawyers at Shook Lin & Bok declined to comment.
The Sept 24’s decision marks a significant escalation in the crisis surrounding Radiant World, once a major participant in the iron ore trade.
Mizuho is suing the trader over US$97.3 million (S$124.5 million) in receivables purportedly arising from iron ore sales to Glencore International AG, according to a court filing obtained by Bloomberg News.
The bank later said it had strong reasons to believe it had been the victim of fraud. BLOOMBERG
