Greensill knew of insolvency risk last year, document shows

Collapsed supply chain finance (SCF) firm Greensill began contingency planning for insolvency as early as December last year, a new document filed with Australia’s corporate regulator shows. Grant Thornton, which has since been appointed as administrators to Greensill in the UK and Australia, was first engaged by Greensill’s UK arm in “late December” according to a filing to the Australian Securities and Investments Commission (ASIC), seen by GTR. Greensill was not publicly reported to be mulling insolvency until March 1, when Credit Suisse confirmed it had pulled the plug on investment funds worth around US$10bn in funding for the firm. Grant Thornton UK was formally engaged by Greensill on December 31 “to assist with contingency planning which included conducting supporting analysis in relation to the options and financial outcomes available to the companies as they sought to restructure”, the relationships declaration, authored by administrator Matthew Byrne, shows. Between December 31 and March 8, Grant Thornton’s UK (GTUK) and Australian (GTAL) branches held eight online meetings to discuss contingency planning for Greensill’s financial predicament. “The purpose of the meetings was to allow GTAL to provide GTUK with considerations in relation to a potential insolvency of the company in Australia, which was one… continue reading

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