Sapphire Minmetals to expedite $2 billion lawsuit against Glencore, chairman says
Chairman Rakesh Sethi said Sapphire Minmetals and related companies intend to pursue the Singapore High Court case on an expedited basis after interim judicial managers were appointed at Radiant World. Glencore says the claims are meritless and will be contested vigorously.
Sapphire Minmetals, others accuse Glencore of fraud, breach of contract Glencore says claims 'meritless', will vigorously contest them By Pratima Desai LONDON, Sept 28 (Reuters) — Trading firm Sapphire Minmetals and related companies plan to move swiftly with their $2 billion lawsuit against Glencore after a Singapore court appointed KPMG as interim judicial managers of Radiant World, Chairman Rakesh Sethi told Reuters. Radiant World, Sapphire Minmetals and other related companies filed a claim two weeks ago in Singapore's High Court, seeking damages from London-listed Glencore over allegations of fraud, breach of contract and conspiracy.
Glencore has described the claims as "meritless". Last week, a Singapore High Court judge said interim judicial managers were needed at Radiant World to investigate suspected fraud at the iron ore trader, according to a court document seen. "We have reviewed the Court's decision concerning the appointment of interim judicial managers for Radiant. We are pleased that the Court declined to appoint nominees from Deloitte, which is Glencore's own auditor," Sethi said in a statement.
"Our claims against Glencore continue. " Glencore recently suspended its head of iron ore trading Peter Hill, Glencore declined to comment. Sethi did not give details on how Sapphire, Radiant and the other claimants plan to accelerate their lawsuit. Glencore To Contest Allegations "Radiant World and Sapphire Minmetals have alleged that they have claims against Glencore for substantial amounts.
These claims are meritless and we will contest them vigorously," Glencore said in a statement on September 15. " The Singapore court appointed KPMG as interim judicial managers of Radiant World after creditor Mizuho Bank withdrew its bid to have rival Deloitte take the role. The judge said interim managers were needed to restore "some degree of external confidence" in Radiant World after financiers and trading counterparties froze accounts, issued demands and withdrew from commercial relationships. Radiant World has faced mounting challenges since banks and counterparties began distancing themselves amid concerns that invoices submitted to banks may not have been valid.
Mizuho provided about $100 million in credit to Radiant World in June, secured by invoices that a counterparty later said were invalid, The bank filed a case against Radiant World in Singapore's Supreme Court in August. Radiant World has not responded to requests for comment on the allegations. (Reporting by Pratima Desai. com)