UK-headquartered DL Hudson has filed for administration after a long-running dispute with receivables finance provider Artis Finance, which the commodity trader said is a voluntary move ahead of an anticipated acquisition.
DL Hudson filed an administration application in London on November 12, alongside Rektron AQ, an acquisition vehicle that took over the trader in 2018 and is owned by Canada-listed Rektron Group.
DL Hudson, which predominantly trades metals and energy commodities, reported gross profits of US$30.5mn for the 2024 financial year, with revenue totalling US$2.5bn.
However, the trader has been subject to a winding-up petition since June, following a dispute with Artis Finance – which entered administration in March – over allegedly overdue loan repayments.
The winding-up petition was filed by Artis Loanco, an Artis Finance subsidiary that is also in administration.
A spokesperson for DL Hudson said the administration is “self-determined” and “part of a separate planned restructuring of the business, as an American investment company, among other prospective investors, has expressed firm interest to acquire the company”.
“This approach was recommended by our legal advisors as the most effective way to preserve value, continuity and ensure an orderly process in light of the winding-up petition filed by Artis,” they told GTR.
Prior to its administration, Artis Loanco provided loans to mid-sized corporates primarily in Southeast Asia and issued notes to investors, while Artis Finance carried out origination and loan servicing.
Transaction records seen by GTR show that in June and July 2022, Artis disbursed around US$7mn to DL Hudson against three sales the trader made to Angel Sky General Trading and two sales to Howitzer FZE, both UAE-based entities.
Payment was due in November the same year, but the buyers defaulted, according to sources close to the matter. Several other DL Hudson buyers also defaulted on trades financed by Artis loans, the sources said.
DL Hudson’s UK corporate filings show outstanding charges were registered in relation to loans from Artis in February 2023.
A DL Hudson spokesperson told GTR in June the company believed that Artis’ administrators did not have “full knowledge of the relevant facts”, and that the financier should have instead pursued a credit insurance claim.
But sources familiar with Artis’ position said the company believed the loans were provided on a full-recourse basis, meaning DL Hudson was liable for any losses, and that the trader had failed to pay insurance premiums due. The DL Hudson spokesperson refuted these claims at the time.
DL Hudson said on November 14 that constructive discussions are ongoing with Artis’ administrator, and that all parties recognise a fair settlement is “the most sensible commercial outcome”.
“The involvement of the investment firms in the prospective acquisition further strengthen the company’s future position and forms an important element of the ongoing restructuring discussions,” the spokesperson said.
Artis Loanco’s administrators, Grant Thornton, did not immediately comment when contacted.
In a March statement, Rektron Group said it did not expect Artis’ administration to have a material impact on DL Hudson’s financial position or operations, and that ongoing trade activities were “stable and fully operational”.
“DL Hudson operates with a diversified financial strategy and robust liquidity, ensuring business continuity remains unaffected,” it said.
In May, Rektron Group announced DL Hudson had opened an office in Geneva. Chief executive Atanas Kolarov said the move “brings us to the forefront of global trade and will help us build on the great momentum we’ve had in our energy and metals trading business”.
In October last year, DL Hudson closed a US$50mn credit facility from Saudi Export-Import Bank aimed at distributing Saudi-origin products across 22 international markets.
Separately, Rektron Group disclosed on October 31 that it had missed the deadline for filing annual financial statements for the 2025 financial year.
It said the delay was “due to continuing challenges and delays in obtaining third-party confirmations from the company’s subsidiaries in Hong Kong SAR and the UAE”, necessary for the completion of the audit. The matter is unrelated to DL Hudson.
On November 13, the company said the British Columbia Securities Commission had issued a temporary and voluntary management cease trade order as a result.
This order requires the company to file bi-weekly default status reports. Rektron Group said it expects to submit its annual filings by December 18.
