Düsseldorf, Frankfurt, London The badly ailing financial group Greensil Capital also filed for bankruptcy in Great Britain on Monday. According to the “Financial Times” in court, Greensill’s lawyers said “the company was in serious financial trouble.”
Last week, the supply chain financier had already sought bankruptcy protection in Australia. The German banking supervisory authority Baffin had withheld all deposits and withdrawals at the German subsidiary, Bremer Greensil Bank.
The bankruptcy should pave the way for the sale of parts of the business to financial investor Apollo. speaking terms. Greensill Holding is registered in Australia and Greensill Capital is headquartered in London. Fintech has more than a thousand employees worldwide.
The finance firm was in supply chain finance: it gave advanced cash to its customers and paid its suppliers’ bills with immediate discounts. Greensill later demanded the full amount of the invoice from the customer. He packed relatively short-term demands on his clients in securities, which he offered to investors.
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The crisis began a week ago when insurance coverage for most of the Greensill business ended. The Supreme Court in Sydney on Monday confirmed the cancellation of the insurance policy by insurance company Tokyo Marine.
As a result, the leading Swiss bank Credit Suisse freeze four funds with investment capital of ten billion dollars, which Greensill used to finance his business. In addition, according to “FT”, Money House demanded repayment of the $ 140 million loan. Greensill could not do this.
Myriad customers affected
Many clients will also be affected by bankruptcy, Greensill’s lawyers warned earlier in the trial in Sydney. The largest customer was the content group GFG Alliance from Sanjeev Gupta, which is now seeking new financing. According to information received from financial circles, the volume should be more than US $ 4 billion.
In an opening statement, the GFG Alliance dismissed concerns about the imposition of insolvency. A spokesperson said, the demand for core products aluminum and steel is very good worldwide, which will make refinancing easier. It aims to liquidate debt like other industrial companies in the long term. There are various options for this, but there is no solution. With Greensill filing for bankruptcy, the pressure to find a solution quickly increases.
Meanwhile, three other board members resigned at Greensill, as reported by Financial Services Bloomberg. They included chairman Maurice Thompson and former Morgan Stanley bankers David Briarwood and Patrick Allen. This increases the number of board members who have resigned, including the brother of company founder Lex Greensill, seven.
According to company records, Thompson, Briarwood and Allen resigned on 3 February, but related documents were not presented to Australian regulators until Friday.
Excess: Questions arise on the role of the head of the Risk Committee on the board of directors of Greensil Bank