Mizuho Bank has accused troubled iron ore trader Radiant World of using a fabricated email that appeared to show Glencore would repay nearly $100 million to the Japanese lender, according to court filings in Singapore.
The allegation centers on about $95.5 million in financing that Mizuho provided for five iron ore receivables it believed were owed by Glencore. The bank later contacted the Swiss commodities trader directly after becoming suspicious about correspondence it had received.
According to Mizuho’s filing, Radiant World contacted a Glencore representative on Aug. 5 seeking confirmation that the receivables would be paid. The following day, Radiant allegedly forwarded Mizuho a purported response from the Glencore employee confirming payment.
The Mizuho banker became suspicious because he had specifically requested to be included in the correspondence. When he contacted the Glencore representative directly, the company said the original email had never been received and that the purported reply had not been sent by its employee, according to the filing.
Glencore subsequently told Mizuho that it found no record of the five underlying transactions or the related invoices and believed the communications had been generated fraudulently. Glencore has separately said it has evidence that Radiant World and associated companies sent falsified invoices, contracts and emails to financial institutions.
Radiant World has denied wrongdoing. Founder Pinkesh Nahar has argued that the underlying trades were genuine and disputed Glencore’s account, saying the company intends to pursue its claims against the commodities trader. Radiant World has also described the broader allegations as arising from a commercial dispute.
The dispute is part of a rapidly expanding legal crisis surrounding Radiant World. Several lenders and financial institutions have accused the trader of providing allegedly falsified invoices and other documents connected to receivables financing. Those allegations have not all been tested at trial.
Mizuho is seeking to place Radiant World’s Singapore operating entity under judicial management. Other parties involved in the proceedings include Deutsche Bank, Intesa Sanpaolo, KBC, Rio Tinto and Glencore, according to court documents.
The case has also expanded beyond Singapore. A Jefferies-linked trade finance fund obtained freezing orders against Radiant World and related parties in London, Hong Kong and Singapore in connection with a separate claim alleging roughly $500 million in fraud. Radiant World has denied the allegations.
The financial stakes are substantial. A recent industry review said creditors and counterparties include Glencore, Jefferies/LAM, Intesa Sanpaolo, Deutsche Bank, Mizuho and other lenders, with several seeking recovery over receivables they say were unsupported or invalid.
Radiant World has also filed a separate lawsuit against Glencore in Singapore seeking more than $2 billion, adding another major layer to the dispute. Glencore has rejected the claims.
The unfolding cases are putting the spotlight on the risks of receivables financing, in which banks and funds provide money based on amounts a company expects to collect from customers. If the underlying invoices or receivables are not genuine, lenders can face substantial losses.
With Mizuho’s judicial-management case and several other legal actions still developing, the central issue now is whether the courts will establish that the disputed receivables and communications were fraudulent or whether Radiant World’s explanation of its trading relationships will withstand scrutiny.
