Glencore Plc has set aside a provision of approximately $480 million to cover its total net exposure to Radiant World. This decision follows allegations that the iron ore trader provided falsified documents to its lenders.
The net exposure includes $951 million owed to Glencore by the trading house. Glencore currently owes $471 million to Radiant World.
Radiant World is now threatening to sue Glencore for $1.4 billion in claimed losses. The firm is demanding over $800 million in compensation after Glencore and other partners halted business operations.
Glencore CEO Gary Nagle previously confirmed the company stopped all new transactions with Radiant. The mining giant is currently working to exit its remaining contracts with the firm.