Trader Radiant World misses salary payments for Singapore and other staff in September

[SINGAPORE] Some employees of Radiant World say they have not received their September salaries, an apparent delay that offers a glimpse of disruptions inside the iron ore trader as its operations are transferred to the care of court-appointed managers.

The people, working in Singapore, China and Europe, said they had not been paid their wages on the usual schedule around the fourth week of the month.

They added that they were not aware of any colleagues having received anything as at Monday (Oct 5).

Several said there had been holdups in the past, with their monthly salaries ultimately paid as late as a few days into the new month.

But they reported widespread concern among staff over the past week, given the multiple legal actions launched against the company.

A number of banks have cut Radiant World off since Bloomberg News first reported in July on creditors’ concerns that the trader had been raising money using falsified documents.

Some of the employees – all of whom asked not to be named as the issue is private – said that in recent months their salaries had been paid from a company account in Dubai.

It was not immediately clear what the cause of the delay was, or if the salaries would ultimately be paid.

A spokesman for Radiant World did not immediately respond to a request for comment. A spokesperson for KPMG, which was appointed as interim judicial manager in September, also did not respond to queries from Bloomberg.

SEE ALSO

Commodity-finance risks back in focus amid Radiant World scrutiny

Singapore judge raises doubts iron ore trader Radiant World is owed US$1 billion

Inside Jefferies’ months-long tussle with Glencore over Radiant

US Fund accuses trader Radiant World of fraud in Swiss complaint

More

Multiple lenders have accused Radiant World of providing falsified documents.

Mizuho Bank, a creditor, began legal proceedings in August to remove the management of the merchant’s key operating company in Singapore, a court document seen by Bloomberg showed.

That was granted in September, when a Singapore court appointed KPMG to take charge.

Restructuring executives from the firm have begun contacting current and former employees this week to arrange interviews, according to the people.

Mizuho said in a court filing that it had strong reasons to believe it was the victim of fraud perpetrated by Radiant World.

The Singapore judge overseeing the case said in a ruling last week that the trader was, or was likely to become, unable to pay its debts. Radiant World has denied wrongdoing. BLOOMBERG