Documents show that the allegedly invalid invoices secured a $100 million Mizuho credit for Radiant World.

Mizuho Bank gave Radiant World $100 million worth of 'credits' in June. These monies were secured by invoices which, according to documents and a source who was directly involved in the matter, later proved to be invalid.

Radiant World has not responded to any requests for comment made on Friday.

The details of credit provided by Mizuho - the banking arm for Japan's Mizuho Financial Group - have never been reported before.

Mizuho's spokesperson stated that it has no comments.

Correspondence obtained by shows that the Mizuho funding was secured "against invoices purporting to be for Radiant World's iron ore sale to Glencore". Glencore, however, told Mizuho that in early August it didn't'recognise invoices.

Glencore had been a major counterparty of Radiant World. In early August, it said that it had made a provision for its exposure. On Friday, it announced it had "stopped any business with Radiant World and terminated all commitments."

Glencore will take appropriate action to address the risks and losses caused by Radiant. A spokesperson for Glencore declined to elaborate.

Radiant World stated in a statement dated July 31, that the allegations that it had?supplied incorrect invoices for funding purposes were "inaccurate" and "unsubstantiated", and it continued to?operate normaly.

Singapore's Police Force said last month it was investigating Radiant World following reports about the company without providing further details.

Pinkesh Nahar founded the company in 2003, and it has grown to be one of 'the largest iron ore trader's in the world.

Radiant 'World reports that it traded more than 80 million metric tonnes of steel raw material in the past year.

(source: Reuters)