By Staff writer
Company's demise blamed on outbreak of coronavirus
Phoenix Commodities Pvt Ltd, a trader of agricultural products, which has offices in Dubai, has been placed in liquidation, with more than $400 million in potential trading losses, according to reports.
Founded 20 years ago, the company was generating $3 billion in revenue in 2019 trading grain, coal, metals and other products, says news agency Reuters.
However, the company has blamed its demise on liabilities on currency volatility caused by the outbreak of coronavirus, which has impacted financial derivatives linked to the US dollar and other currencies.
Restructuring firms Quantuma LLP and KRyS Global have been appointed as joint liquidators and notice was sent to the company’s creditors on April 24.
Prior to the appointment of liquidators, the group had available banking facilities of approximately $1.6bn with a number of banks based in Singapore, Britain and Dubai, a document seen by Reuters showed.
According to a report in Gulf News, UAE banks have exposures between $350m and $400m to Phoenix Group.
Phoenix Global DMCC, the company’s Dubai-based arm, traded commodities via the Dubai Multi Commodities Centre (DMCC).
The Phoenix Group operated globally with about 100 corporate entities located in Europe, Africa, Asia, Australia and North America and employed over 2,500 employees.