Phoenix Commodities, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than US$400 million (S$567 million) in potential trading losses. It was valued at $1.1bn-$1.24bn as recently as January, according to a document filed by its provisional liquidators.. The Phoenix Group, which was registered in the British Virgin Islands, operated globally with about 100 corporate entities located in Europe, Africa, Asia, Australia and North America and employed over 2,500 people.
First Abu Dhabi bank reports $73.3m exposure to Phoenix Commodities. Emirates NBD, Mashreq, HSBC Holdings and Standard Chartered were also owed millions by the company.ArabianBusiness.com
Phoenix Commodities began as a rice trading business in 2001. Its executive chairman, Gaurav Dhawan, became the majority shareholder in 2006 and expanded its activities. It had three main divisions – agrifoods, resources (coal and metals trading) and consumer brands. Phoenix traded 12m tonnes of commodities and goods last year and claims to be one of the largest rice distribution companies in the world.