Commodities trader Phoenix goes into liquidation due to coronavirus: documents - Reuters:
Phoenix Commodities Pvt Ltd, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than $400 million in potential trading losses, according a document prepared by the liquidators seen by Reuters.
The business, founded 20 years ago, grew into a company generating $3 billion in revenue in 2019 trading grain, coal, metals and other products but it unravelled when the coronavirus outbreak upset financial markets. Phoenix blamed the liabilities on currency volatility caused by the onset of the coronavirus, affecting financial derivatives linked to the U.S. dollar and other currencies, the document prepared by the liquidators said.
Executives from restructuring firms Quantuma LLP and KRyS Global were appointed as joint liquidators and notice was sent to the company’s creditors on April 24, according to the document. They declined to comment.
The holding company was based in the British Virgin Islands, where the liquidation process took place. A notice was sent to creditors for a meeting with the liquidators on Friday, the document showed.
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