Crisis-hit Greensill expects to avoid insolvency and preserve the bulk of its existing supply chain finance (SCF) business, GTR can reveal, though the London-based fintech will shed business linked to Sanjeev Gupta’s GFG Alliance. Greensill had been plunged into financial difficulty this week after Credit Suisse froze an investment fund that provided billions to the company, prompting speculation it was on the brink of collapse. That prospect appeared more likely on Tuesday when it emerged Greensill had sought insolvency protection in Australia. But according to a statement issued on Tuesday, Greensill has now “entered a period of exclusivity with a leading global financial institution, with a view to concluding a transaction with them this week”. The deal would involve the sale of Greensill’s operating business to Athene Holding Ltd, which is part-owned by private equity investor Apollo Global Management. The value of the transaction has not yet been disclosed. GTR understands from a source close to the deal that although there will be a new owner of the company, and its higher-risk business linked to Gupta will be exited, more than 70% of its pre-existing SCF clients will remain on board. The source adds that Greensill is “nowhere near insolvent”… continue reading
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Source: CTRM Center