Radiant World fund linked to Jefferies says it may only have $10,000 in cash

Radiant World, a trader in iron ore, may only have $10,000 cash on hand despite its most recent financial statements showing a cash balance of more than $200 million. This was revealed by lawyers representing a fund linked to Jefferies who are suing the company over an alleged fraud.

LAM Trade Finance Group II, in which U.S. Bank Jefferies has a minor stake, obtained last month a freezing order against Radiant World and its founder Pinkesh Nahar, as well as others, from London's High Court.

Radiant World is under pressure because of concerns that the invoices it provided to its bank may not have been valid. The firm strongly denies this. Singapore's police department announced last month that it was investigating Radiant world.

LAM Trade Finance Group II has obtained freezing orders also in 'Hong Kong and Singapore. It claims to have purchased iron ore receivables through linked companies. By doing so, it acquired the right to be paid by traders like Glencore and Vitol. However, it says that these receivables did not exist or had been invalidly assigned.

The judge who made the freezing order said: "It seems that the defendants have used debit notes for as long as possible to cover the cracks. As the claimant puts it, the well is now dry."

Radiant World didn't immediately respond to our request for comment.

Lawyers representing 'LAM Trade Finance Group II' argued that the court order should remain in place at a hearing held on Thursday due to the possibility that defendants could dissipate their assets.

The asset totals given in a witness statement by Radiant World for the financial statements of the group for the year ending September 30, 2025 were "substantially" different.

Radiant World's financial statement states that it has a cash balance of?only US$10,000, but the audited statements show a cash balance of over $200,000,000.

Radiant World has been involved in several lawsuits. It sued Glencore in Singapore this week, seeking over $2 billion.

(source: Reuters)