STOCKS | Jefferies Fund Exposure to Radiant World and Another Entity Nears $500 Million

A Jefferies-managed fund that previously lent to bankrupt auto parts group First Brands Group now has nearly $500 million of exposure to troubled iron ore trader Radiant World and another entity, making it one of the largest creditors in the second high-profile alleged fraud case. According to Sina Finance, people familiar with the matter said Jefferies Asset Management obtained a freezing order of up to $499 million from the High Court in London last week covering Radiant World, its founder Pankaj Nahar, alleged affiliate Sapphire Minmetals, and its chairman Rakesh Sethi. The exposure is far above previously reported levels and underscores the fund's role as a key source of financing for the two iron ore traders. According to Sina Finance, the private credit fund Point Bonita, part of Jefferies' Leucadia Asset Management unit, was hit again after the First Brands Group collapse, and Jefferies disclosed in October last year that its exposure to the Ohio-based company was $715 million. People familiar with the matter said the trade finance fund began providing financing to Radiant in 2021, and the exposure grew from $35 million to several hundred million dollars over the following four years. They added that after First Brands' bankruptcy, Point Bonita faced large investor redemptions and stopped renewing existing credit lines to the commodities trader, triggering a liquidity crisis at Radiant.