Singapore High Court judge tasks interim managers with probing suspected fraud at Radiant World
MFG•A Singapore High Court judge ordered KPMG appointed as interim managers of iron ore trader Radiant World to investigate suspected fraud. The preliminary order followed a case brought by creditor Mizuho Bank and is not a final finding.
1. Interim managers appointed
Judge Kristy Tan ordered KPMG’s appointment on Thursday, citing initial evidence that Radiant World “is or is likely to become unable to pay its debts.” She wrote that the managers should investigate a prima facie pattern of suspected fraudulent conduct and assess how widespread any fraud may be.
2. Company denies need
Radiant World has previously said it is not insolvent and that interim managers are unnecessary and not in creditors’ best interests. The company has denied concerns that invoices provided to banks may have been invalid; it did not comment on Friday.
3. Creditor’s case
Mizuho Bank brought the case after providing Radiant World about $100 million in credit in June, secured by invoices a counterparty later said were invalid. The judge said financiers and trading counterparties had frozen accounts, issued demands and withdrawn from commercial relationships.
