LAM Trade Finance Group II, a fund with a Jefferies minority stake, applied Sept. 7 for a freezing injunction against iron ore trader Radiant World and its founder Pinkesh Nahar in Singapore's Supreme Court, according to the court website.
The Singapore action follows a worldwide freezing order secured by the fund from a British court on Sept. 2, targeting Radiant World, its founder, Sapphire Minmetals, and its chairman Rakesh Sethi.
The legal pressure centers on concerns that invoices provided by Radiant World to its banks may not have been valid. Radiant World has denied wrongdoing.
Glencore Chief Executive Gary Nagle stated in August that Glencore considers Radiant World and Sapphire Minmetals to be part of the same group. Sethi has denied this assertion.
Radiant World's operational position has deteriorated. Several banks have frozen its accounts, and multiple trading houses have severed ties citing concerns over invoice validity.
Additional legal actions compound the pressure. Trade-finance firm Incomlend is suing Radiant World and Nahar in Singapore. Mizuho Bank has initiated legal measures to remove management of Radiant World's Singapore unit.
Singapore police confirmed in August that it was investigating Radiant World after receiving multiple reports about the company.
A Singapore Supreme Court hearing is scheduled for Sept. 9. Radiant World, Sapphire Minmetals, Nahar, and Sethi did not immediately respond to requests for comment.
