Deutsche Bank, KBC freeze some of Radiant World's Singapore bank accounts, Bloomberg News reports
Financial Actions and Industry Response
Bank Account Freezes and Credit Line Suspensions
Aug 6 (Reuters) - Deutsche Bank and KBC Group NV have frozen some of Radiant World's Singapore bank accounts, while some other banks have suspended credit lines, Bloomberg News reported on Thursday.
Mining Companies Cut Ties
Mining companies Rio Tinto and Vale SA have meanwhile struck Radiant World, one of the world's largest iron ore traders, off their lists of approved customers, the report added, citing people familiar with the matter.
Background: Scrutiny and Document Concerns
Scrutiny around Radiant World has intensified after Bloomberg News reported last week that commodity trading houses Cargill and Vitol Group had cut ties with the firm over concerns that invoices or other documents Radiant World had provided to its banks were not valid.
Radiant World's Response
Radiant World previously described those claims as "inaccurate and unsubstantiated". It declined to comment on Thursday's report.
Comments from Industry Stakeholders
Rio Tinto declined to comment. The miner has no major exposure to Radiant World, its iron ore chief executive Matthew Holcz said on Wednesday.
Deutsche Bank, Vale and KBC Group declined to comment.
Glencore's Position
Miner and trader Glencore's CEO Gary Nagle on Wednesday said the company had taken some provision in its accounts related to Radiant World and stopped doing new business with the firm, adding that its exposure was not material.
Reporting Credits
(Reporting by Gursimran Kaur, Anousha Sakoui, Divya Rajagopal, Veronica Brown and Tom Daly. Editing by Janane Venkatraman and Mark Potter)
