Updated · Global Banking And Finance Review · Aug 5
Glencore Takes Radiant World Provision, Halts New Business as Invoice Scrutiny Spreads
Updated
Updated · Global Banking And Finance Review · Aug 5
Glencore Takes Radiant World Provision, Halts New Business as Invoice Scrutiny Spreads
3 articles · Updated · Global Banking And Finance Review · Aug 5
Summary
Glencore said it booked a provision tied to iron ore trader Radiant World, though CEO Gary Nagle said the group's exposure is not material.
Pre-existing contracts still have outstanding items, and Glencore is reviewing how to handle them in a legally compliant way while stopping any new business with Radiant.
Nagle did not disclose the provision's size or when Glencore halted new dealings, but said heightened scrutiny around the counterparty drove the response.
Radiant World and Sapphire Minmetals should be viewed as one group because of similar shareholdings and management, Nagle said, extending the issue beyond a single entity.
Vitol and Cargill also stopped doing business with Radiant after concerns that invoices shown to banks may not have been valid; Radiant has called those claims inaccurate and unsubstantiated.