In the first legal action taken by a lender to Radiant World to become public since news of concerns that the iron ore trader had provided banks with falsified documents to secure financing, Mizuho Bank Ltd has filed a case against the Singapore operating entity in the city-state’s Supreme Court, according to the court’s website.
Mizuho Bank, the banking unit of Japan’s Mizuho Financial Group, is seeking an injunction against Radiant World Corporation, a court listing showed. Reuters could not find any other instance of public legal action by a Radiant World creditor.
Some banks have frozen Radiant World’s accounts and trading houses have severed ties on concerns the commodity trader had supplied invalid invoices to raise financing.
Singapore Police confirmed this week that reports were lodged and investigations were ongoing.
The court listing did not provide details of the injunction sought.
Mizuho Bank declined to comment. A spokesperson for Radiant World did not immediately comment outside UK business hours.
Radiant World said in a statement in July that the claims were inaccurate and unsubstantiated.
Pinkesh Nahar founded Radiant World in the early 2000s, according to the company’s website, which says it trades more than 80 million metric tons of iron ore annually.
Deutsche Bank and KBC Group NV have frozen some of Radiant World’s Singapore bank accounts, while some other lenders have suspended credit lines, Bloomberg News reported earlier in August. AGENCIES
