Credit Suisse Fund accuses SoftBank of investing more than $ 440 million



A Credit Suisse group AG

CS 1.68%

SoftBank Group accused fund Corp.

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in U.S. court cases for orchestrating transactions that rendered worthless a $ 440 million investment the fund made to finance a company backed by SoftBank.

The case, filed Thursday in U.S. district court in California, asks a federal judge to allow the Credit Suisse fund to serve a subpoena on a U.S. branch of SoftBank. The filing, which indicates the fund is preparing to sue SoftBank in the UK, deepens the dispute over the demise of Greensill Capital, a supply chain finance company that went into insolvency earlier this year.

Greensill provided business loans which served as advances on payments expected from clients of those businesses; Greensill conditioned the securities lending, which the investment funds managed by Credit Suisse bought.

One of those companies was Katerra Inc., an American start-up in the construction industry. The Credit Suisse fund held $ 440 million in notes secured by Greensill’s loan to Katerra, and when Katerra ran into financial trouble last year, Greensill forgave the loan.

SoftBank was an investor in both Greensill and Katerra, and in the US court filing the Credit Suisse fund, it said SoftBank had “orchestrated a deal” that cut the fund off of any possible proceeds without notifying the fund.

A spokesperson for SoftBank declined to comment, as did a spokesperson for Credit Suisse.

SoftBank invested in Greensill in late 2020, and Credit Suisse executives expected the money to go into their funds to pay off Katerra’s loan – instead it ended up in the German banking unit. of Greensill, the Wall Street Journal reported in April.

In June, the Journal reported that Credit Suisse had dissolved a personal banking relationship with SoftBank founder Masayoshi Son and ended transactions with the company.

The court record filed Thursday is known as the Section 1782 motion, in which a party can ask a U.S. court to order the collection of evidence for proceedings outside the United States. The Credit Suisse fund says it has taken enough action to sue SoftBank in the UK. to justify the summons, which requires a variety of documents.

Write to Charles Forelle at [email protected]

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