The application was filed by Mizuho Bank, a major creditor of Radiant World. Mizuho had extended roughly US$100 million in credit that was secured by invoices later judged to be invalid.

Radiant World has been under pressure after banks and trading partners began questioning the validity of its invoices. The company denies any wrongdoing and argues it is not insolvent.

The judge explained that interim managers are needed to investigate the alleged fraud, determine how widespread any misconduct might be, and restore “some degree of external confidence” after financiers froze accounts and withdrew support.

Interim managers will run the business temporarily while the court decides whether a full judicial manager should be appointed. The order is based on a preliminary assessment and does not constitute a final finding of fraud.