Grant Thornton told the Australian Securities and Investments Commission that the liquidation of the Australian parent company is not expected to be completed until the end of 2024, in part due to legal battles between creditors, insurers and former clients of Greensill Capital. .
In Australia, the company’s main insurer, Sydney-based Bond & Credit Co (BCC) has alleged fraud in Federal Court to avoid paying claims, arguing that Greensill Capital UK failed to disclose sufficient information when underwriting insurance policies.
BCC, now owned by Japan’s Tokio Marine, was registered as a company in Australia in 2015. Until April 2019 it was half-owned by Australian insurer IAG and BCC’s claims were made in connection with a lawsuit originally brought by Greensill Bank. administrator against IAG.
Other allegations of fraud include a criminal complaint filed by financial regulator BaFin which claimed Greensill Bank could not provide evidence of claims on its balance sheet that it allegedly acquired from companies belonging to Sanjeev Gupta’s GFG Alliance.
The UK Serious Fraud Office is investigating suspected fraud and money laundering at GFG entities, including their funding arrangements with Greensill Capital UK.
In Germany, Greensill Bank’s only preferred creditor is the German Banks Compensation Scheme, which received 400 million euros ($595 million) from the bank in December, and a further 150 million euros made available disposal of the plan in May, according to bankruptcy court records. .
Meanwhile, Credit Suisse – which is still trying to collect about a third of the US$10 billion ($13.9 billion) its investors owe on securities provided by Greensill Capital – is considering making financial claims against SoftBank. in the UK courts.
In April, Credit Suisse received US District Court approval to subpoena documents from late 2020 and early 2021 from a former Greensill Capital client, US-based Katerra, which was primarily owned by Softbank.
Another lawsuit filed in the United States by former Greensill Capital client Bluestone Resources, which also alleges the supply chain finance firm committed fraud, could be settled after lawyers say in May that they were working on “a potential resolution” of the lawsuit.
Subsidiaries of Greensill Capital’s Australian parent company are being wound up, including Greensill Capital Securities which is being wound up by Queensland insolvency specialist Worrells.