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Credit Suisse (CSAM) files additional insurance claims as part of Greensill funds liquidation

16th August 2022 - Author: Luke Gallin

Credit Suisse Asset Management (CSAM) has now filed 18 claims against insurers in relation to the liquidation of its Greensill-linked funds, amounting to exposures of approximately $2.2 billion across the two Supply Chain Finance Funds (SCFFs).

Credit Suisse LogoAs the liquidation effort continues following the collapse of financial services company, Greensill Capital, last year, CSAM has filed two additional claims against insurance companies as part of its process, raising the number to 18.

Back in January, CSAM announced that it had filed insurance claims related to more than $1.1 billion in exposure across the two Greensill-linked funds, with this figure now doubling to the $2.2 billion reported by the firm today.

In documents released today, CSAM explains that across the two SCFFs, the Credit Suisse (Lux) Supply Chain Finance Fund and the Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund, it has now filed insurance claims in respect of all the SCFF programmes where there are insurable losses.

So, for certain trade credit insurers, it seems that more claims are coming as part of the Swiss bank’s efforts to recover funds linked to the insolvent financial services company.

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CSAM says that it expects the insurer to challenge the validity of the relevant insurance policies across possibly all of its insurance claims, noting that this view is based on an insurer’s defence in the related Catfoss Renewables Claims litigation which commenced in an Australian Federal Court in February of this year.

However, “It is CSAM’s firm position that all relevant insurance policies are valid and that the insurers’ claims are unfounded,” argues the bank. Adding that, where appropriate, it “will continue to pursue litigation in respect of the insurance claims against Insurers and other relevant parties.”

So far, repayments to investors stands at $6.75 billion. And of the $10 billion in fund assets linked to Greensill, including cash positions, CSAM has recovered some $7.3 billion, or 73% of the total assets under management (AuM) at time of suspension – March 1st, 2021.

Supply-chain finance specialist Greensill filed for administration last year after warning that it is in “severe financial distress” and unable to repay a $140 million loan to Credit Suisse. The troubles started after it lost insurance coverage for its debt repackaging business and said that its largest client, GFG Alliance, had started to default on its debts.

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