Iron ore trader Radiant World is facing a severe liquidity and counterparty crisis after Deutsche Bank and KBC froze some of its Singapore bank accounts, according to sources cited by The Straits Times.
The banking restrictions coincide with reports that major mining companies are actively cutting ties with the firm, signaling a rapid deterioration in its operational standing within the commodities supply chain.
The move by the European lenders marks a significant escalation in the pressure on Radiant World, which has been grappling with mounting financial scrutiny.
By freezing access to funds, the banks are effectively restricting the trader's ability to settle transactions or manage working capital, a critical function for a business reliant on high-volume, short-cycle trade flows.
The simultaneous withdrawal of support from major miners suggests that counterparties are prioritizing risk mitigation over existing commercial relationships.
This development follows earlier warnings from Glencore Plc, which recently disclosed a financial provision for its exposure to Radiant World and confirmed it had ceased all new business with the trader.