(Sept 3): A unit of Jefferies Financial Group Inc won a worldwide freezing order against Radiant World and its founder Pinkesh Nahar, according to people familiar with the matter.

The freezing order from the UK’s High Court is the most significant move yet by a creditor against Radiant World, which is facing a growing list of legal difficulties. It comes after Bloomberg News reported that several top commodity firms had moved to cut ties with the company — one of the world’s biggest iron ore traders — amid concerns it had provided falsified documents to banks to secure finance.

LAM Trade Finance Group II LLC — a fund run by a Jefferies subsidiary — filed claims against Radiant World in London last week, including one seeking an injunction, Bloomberg reported earlier on Wednesday, citing public court records.

The court records did not give any more information about the claims or the outcome of the application, but lawyers for Jefferies have written to several of Radiant World’s counterparties in recent days informing them that a freezing order was granted, some of the people said, asking not to be identified because of the sensitivity of the matter. 

The order applies to Radiant World’s Hong Kong parent company Radiant World Holding Ltd, its main Singapore operating entity Radiant World Corporation Pte Ltd and its owner Pinkesh Nahar, the people said.

It also applies to Sapphire Minmetals Corporation Ltd. and its chairman and majority owner Rakesh Sethi, they said. Bloomberg has reported that many people who do business with Radiant World and Sapphire Minmetals believe them both to be controlled in reality by Nahar; the two companies have previously told Bloomberg they are separate.

Radiant World didn’t immediately respond to requests for comment. Rakesh Sethi, chairman of Sapphire Minmetals, did not immediately reply to an email seeking comment. A spokesperson for Jefferies declined to comment.

Jefferies’s Point Bonita fund was financing invoices related to both parties, but was informed by trading counterparties that the documents were not genuine, Bloomberg has reported.

In Singapore, Radiant World and Nahar are also being sued by a local trade finance firm, while Mizuho Bank Ltd has also applied to put its main operating unit under so-called judicial management, a form of debt restructuring in which a third party takes control of a company, Bloomberg reported earlier Wednesday.

The bank is seeking to appoint two Deloitte LLP restructuring professionals as interim judicial managers of the trader, according to a court document seen by Bloomberg.

Radiant World and its founder have also been sued in Singapore by Incomlend Pte Ltd. The company, a platform that provides invoice financing, is seeking over US$34 million (RM137.36 million) in a case listed as “tort of deceit conspiracy by unlawful means”. That’s a civil cause of action where a misrepresentation has allegedly been made and the claimant is seeking to recover losses.

Filings at Singapore’s company registry show that both Mizuho and Incomlend are creditors of Radiant World Corp.

Radiant World and Nahar have not commented on either case.

Radiant World, which became one of the leading players in iron ore trading in recent years, is also facing probes in the US and Singapore. It has not been accused of wrongdoing by any law enforcement agency, and investigations do not always lead to charges.

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