Credit Suisse Prepares New Insurance Claims for Greensill Funds

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ZURICH – A first insurance claim has been filed and more are being prepared as part of Credit Suisse’s efforts to recover funds from its insolvent supply chain financing linked to Greensill, the bank said on Tuesday. Swiss bank.

The collapse of Credit Suisse’s $ 10 billion supply chain finance fund in March sparked a tumultuous period for the bank, which, coupled with a multibillion-dollar loss from family office Archegos, has resulted in a series of executive layoffs.

“A first insurance claim has been filed and (Credit Suisse Asset Management) is currently preparing to file additional claims through Greensill Bank and with the help of Greensill Capital UK,” the bank said in a document posted on its website Internet. A spokesperson said no further information could be provided regarding the insurance claims at this time.

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Credit Suisse has worked with outside advisers and experts to help recover the funds, of which an estimated $ 7.0 billion, or 70%, has now been recovered, the bank said on Tuesday, up from $ 6.1 billion. beginning of July.

About $ 5.9 billion has been returned to investors so far after the last payment in August.

Despite this, the number of late payments had increased over the period, with the bank saying about 85% of overdue notes were related to payments that were not made on time.

By the end of August, the funds had accumulated some $ 2.5 billion in late payments, Credit Suisse said, including $ 2.2 billion linked to three unique counterparties, the largest of them, the tycoon’s GFG Alliance. Sanjeev Gupta steel, which is having repayment problems.

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The bank expects the funds to accumulate around $ 145 million this year in collection costs, she said Tuesday, as it focuses on some $ 2.3 billion in loans granted by Greensill to the three counterparties, GFG, Katerra and Bluestone.

He said talks were underway regarding the refinancing and restructuring of GFG’s assets in the United States and Britain, while talks with Bluestone Resources, the West Virginia governor’s coal company, are unlikely result in payments or agreements before the fourth quarter.

Tokio Marine’s Australian unit provided insurance to specialist finance firm Greensill, but the Japanese group said it was investigating the validity of those policies and, in May, did not expect any material impact on its policies. income. (Reporting by Brenna Hughes Neghaiwi Silke Koltrowitz, editing by Michael Shields and Emelia Sithole-Matarise)

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