Radiant World sues Glencore for $2 billion
The Iron Ore Trader Radiant World Corp, along with related companies, has filed a lawsuit in Singapore's High Court against the commodities giant Glencore, claiming damages of more than 2 billion dollars for fraud, breach and conspiracy.
According to a copy of the lawsuit, filed on Tuesday by Glencore and seen by, it deliberately concealed its trading arrangements with Radiant and related companies in its audited documents while being monitored for compliance by the U.S. Justice Department.
The company says that Glencore "directed these channels to ensure the true commercial arrangements?wouldn't be reflected in their audited records" following its guilty pleas of 2022 in the U.S. for commodity price manipulation charges and bribery.
According to the claim, Glencore has demanded that Radiant World pay $1.1 billion in mark-to market exposure on derivatives positions for an incident from 2021, when the practice was to rollover such losses.
Glencore extracted more than $800 million between 2021-2026 by promising a?long-term partnership, before terminating abruptly the relationship in this year.
"These 'claims' are bogus and we will contest them vigorously. Radiant World has exposed us to risk and we have suffered losses. We will take the appropriate actions," Glencore stated in a Tuesday statement.
On Wednesday, the Singapore court's website did not display a record of the filing.
Radiant World published on its website a statement that confirmed the lawsuit.
The statement on the website stated that "the claims, including claims for damages in excess of US$2 billion are listed in the Statement?of Claim submitted with the Court."
"Radiant World denies, in the strongest terms possible, all allegations of wrongdoing made against it, and the companies associated with it. It has always been a commercial dispute.
The London-listed Glencore said that it "stopped business" and had terminated all contracts with Radiant World on Friday.
Radiant World is facing a'mounting challenge' since banks and counterparties have started to distance themselves over concerns that invoices provided by Radiant World to its banks might not be valid.
Singapore police said last month it was investigating Radiant World following reports received about the company.
Radiant World denies any wrongdoing. It calls the allegations inaccurate and unsubstantiated, and says it "conducts business according to the highest legal and commercial standards".
Radiant World's suit also claims that Glencore made damaging remarks to financial institutions as well as media outlets.
(source: Reuters)
