Reinsurance News

Credit Suisse (CSAM) files claims connected to $1.1bn+ of Greensill-linked funds

14th January 2022 - Author: Luke Gallin

Swiss bank Credit Suisse has filed insurance claims related to over $1.1 billion in exposure across two of its Greensill-linked supply chain finance funds, as the bank works to recover $10 billion in funds linked to the insolvent financial services company.

Credit Suisse LogoGreensill, which specialises in supply-chain finance, 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.

It came after the financial services firm lost insurance coverage for its debt repackaging business and said that its largest client, GFG Alliance, had started to default on its debts.

A document published by Credit Suisse yesterday shows that as of December 31st, 2021, it had filed five claims related to $846 million in exposure for its Luxembourg domiciled supply chain finance fund, and filed two claims related to $326 million in exposure for its Luxembourg-based supply chain finance high income fund.

Credit Suisse says that it’s asset management arm, Credit Suisse Asset Management (CSAM), is currently preparing to file additional claims through Greensill Bank and with the assistance of Greensill Capital UK.

The document shows that so far, the bank has recovered around $7.2 billion of some $10 billion in funds linked to Greensill.

Reports show that Credit Suisse’s focal point has been on around $2.3 billion in loans provided by Greensill, which failed back in March, to counterparties GFG Alliance, SoftBank-backed Katerra, and Bluestone, for late payments.

As of the end of December 2021, Credit Suisse said that $2.5 billion in late payments had accrued across four of its supply chain-linked funds, of which around $2.2 billion relates to the three firms above.

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