Credit Suisse will help investors meet some costs of recovering monies from its Greensill funds
Credit Suisse Group
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07:46 20/03/24
Credit Suisse will make up for "as much as possible" of the legal and advisory costs needed to help investors recover as many funds as possible from the supply-chain finance funds it oversaw together with the now bankrupt Greensill Capital.
The day before, the Swiss broker said the lion's share of the expenses incurred to date had not been passed on to investors and that it expected to book approximately $145m in 2021 to cover the costs of the process, Bloomberg reported.
Recovery work being done by its own teams would be absorbed by Credit Suisse.
Its funds had invested in notes issued by Greensill Capital.
The funds were marketed as very safe investments because they were meant to be backed up by companies' invoices, but in fact the loans ended up being given against the value of expected future invoices.
Of the $2.7bn in overdue loan payments that it was attempting to recover, $2.3bn were due from Katerra, GFG Alliance Lmtd. and Bluestone Resources, all of which were being restructured, meaning it was unclear just how much of those monies Credit Suisse would be able to recover.
The remaining $400m were late payments from debtors at risk of insolvency of which Credit Suisse expected to recover between more than 90% but less than 100%, the investment bank said.