Credit Suisse seeks $440 million from Softbank over Greensill Capital collapse
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Credit Suisse filed a lawsuit in the High Court against Softbank Group, demanding that the Japanese company reimburse $440 million, reports Bloomberg. The lawsuit is part of a plan by the Swiss bank to return to investors the funds they lost in the collapse of Greensill Capital.
British fintech startup Greensill Capital announced filing for bankruptcy in March 2021. The company was engaged in providing short-term advance loans to finance the supply chains of its customers. At the same time, they were financed mainly through the funds of Credit Suisse, which allocated $10 billion for these operations.
The lawsuit against Softbank is connected with the American construction company Katerra, which was one of the clients of Greensill Capital, and its majority shareholder was just a Japanese holding. However, shortly before the collapse of Greensill, Katerra secured a restructuring of its debt. Credit Suisse claims that Softbank orchestrated the restructuring only to get its own money out of the construction company, knowing full well that Greensill, already in free fall, would be unable to repay its $440 million debt to Credit Suisse.
Softbank denied Credit Suisse’s accusations: “After more than two years of trying to shift the blame for its own poor investment decisions to someone else, Credit Suisse finally filed a lawsuit – but, as expected, it is completely unfounded,” a Softbank spokesman said.
Read more about the situation with the bank in the material “The whole of Switzerland is in terrible turmoil”.
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