Vitol, Cargill Halt Trading With Radiant World; Jefferies Fund Reviews Exposure
JEF sits 49% above its 52-week low of $35.53.
Summary
Major commodity traders Vitol and Cargill have stopped trading with Radiant World after discovering invalid invoices or documents provided to banks, Bloomberg reports. Glencore is also halting new business, and Intesa Sanpaolo has taken a provision on its exposure. Jefferies' Point Bonita Fund is reviewing its own exposure to Radiant World. The scale of the fund's exposure is not disclosed, but any write-down could impact Jefferies' earnings, especially following the $58.2 million goodwill impairment on Tesselli in Q2. This is a developing credit event that could escalate if more counterparties pull back.
At the time of this announcement, JEF was trading at $52.99 on NYSE in the Finance sector, with a market capitalization of approximately $12.7B. The 52-week trading range was $35.53 to $71.04. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.