Supply chain finance (SCF) provider Greensill could be at risk of insolvency within days, after Credit Suisse suspended two investment funds relied on by the London-based fintech. Credit Suisse issued a notice to investors on Monday saying it was immediately suspending its SCF high income and investment grade funds, which provide as much as US$10bn in funding to Greensill. In its statement, the bank says some of those investment funds’ assets are “subject to considerable uncertainties with respect to their accurate valuation”, and the decision to freeze them was taken “to prevent any detriment to the subfunds and their investors”. When contacted by GTR, a spokesperson for Greensill acknowledges the bank’s decision “to temporarily gate supply chain finance funds dealing in Greensill-sourced assets”. “We remain in advanced talks with potential outside investors in our company and hope to be able to update further on that process imminently,” they add. The decision leaves Greensill facing the prospect of insolvency, and according to the Wall Street Journal, has already appointed accounting firm Grant Thornton to guide the company through restructuring if required. Apollo Global Management, a New York-based private equity investor, is also in talks to purchase Greensill’s operational business for around… continue reading
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Source: CTRM Center