Credit Suisse to pay out further $750m to Greensill fund investors
Credit Suisse will pay out a further $750m (£545.9m) to backers of its Greensill-linked supply chain finance funds, its asset management arm announced today.
Thus far, the lender has clawed back $6.1bn of the $10bn of its funding supported by collapsed supply chain finance firm Greensill Capital, up $200m on its previous update.
The new repayments, which will be carried out in the week of July 5, will bring the total it has paid out to investors in the liquidation proceeds to $5.6bn.
“Further liquidation proceeds are expected to be paid out to investors as soon as practicable in future installments,” Credit Suisse said in the note. “Concrete timing on the next cash payouts cannot be provided at this moment.”
The Swiss bank has been mired in controversy in recent months due to its exposure to the collapse of Greensill and then Archegos Capital Management.
Investors are facing billions of dollars in losses, with some expected to sue the bank over alleged mismanagement of funds.
And the lender has come under extra fire for its personal relationship with Sanjeev Gupta, the founder of the GFG Alliance and one of Greensill’s clients.
Former executives at the bank told the Financial Times that leadership wooed Gupta, offering him a string of services as his private wealth manager, as well as VIP treatment.