The Strategist

FT: Credit Suisse keeps Greensill Capital alive at investors' expense


09/21/2021 - 10:40



Credit Suisse investors will have to pay $145 million to allow fintech startup Greensill Capital, which filed for bankruptcy earlier this year, to continue its existence, the Financial Times reports.



Rillke
Rillke
The British-Australian startup, once considered one of the most successful in its sector, declared bankruptcy earlier this year. Credit Suisse, which had once allocated $10bn to the startup in its funds, ended up having to urgently repay its investors with the money. The bank has managed to recover about $7 billion and says it needs to keep the de facto startup alive, which has not been operating for six months, including paying its employees' salaries, if it is to stand a chance of getting another $3 billion back. 

The Swiss bank's announcement of impending write-offs has angered investors, but it says it has no other option - otherwise the bank will have no one to sue for non-payment of bills.

"The recovery work that Credit Suisse is undertaking on behalf of the fund's investors inevitably entails external costs," the bank said in a statement. "Credit Suisse is taking on as much of these costs as possible and will seek to recover the amount we incurred when it is appropriate".

source: ft.com