KPMG appointed interim manager for Singapore iron-ore trader Radiant, sources say
LONDON/SINGAPORE - A Singapore court appointed KPMG as interim judicial managers of iron-ore trader Radiant World after creditor Mizuho Bank withdrew its push for rival Deloitte to take the role, according to two people with knowledge of the matter.
Radiant's lawyers objected to Deloitte as the accountant, arguing the firm was conflicted because it audits London-listed Glencore, which is being sued by the iron-ore trader for $2-billion in Singapore, according to one of the sources and a draft of a court document seen by Reuters.
The appointment of KPMG by the court was first reported by Bloomberg News.
Deloitte had filed a statutory declaration saying it was not conflicted, the source said, but Japan's Mizuho withdrew its nomination, the source said.
A spokesperson for Radiant World confirmed that its Singapore operating entity had been placed under interim judicial management, with KPMG appointed as the judicial managers.
Interim judicial managers typically take over management of companies while the court decides whether to appoint a full judicial manager. They effectively take control of bank accounts, contracts and counterparty relationships to keep the business functioning without initiating new business.
Glencore, KPMG and Mizuho declined to comment. Deloitte did not respond to a request for comment.
Radiant World has faced mounting challenges since banks and counterparties began distancing themselves due to concerns that invoices provided to its banks may not have been valid.
Singapore's police force said last month that it was investigating Radiant World after receiving reports about the company, without giving further details.
Radiant World has denied any wrongdoing, calling the claims inaccurate and unsubstantiated and saying it "conducts its business to the highest commercial and legal standards".
