Greensill’s Australian parent put into liquidation


SYDNEY – Greensill’s Australian parent company went into liquidation following a meeting of creditors owed nearly $ 1.33 billion when the supply chain finance firm went insolvent last month .

The decision to liquidate Greensill Capital Pty Ltd. was not opposed by the 23 creditors who joined a virtual meeting in Australia that lasted more than 90 minutes on Thursday. Three creditors abstained in the vote.

No buyers have appeared for Greensill Capital, the parent company of more than 40 companies, after being declared insolvent, according to a creditor who attended the meeting. Separate insolvency proceedings for Greensill’s main UK-based business unit and its banking unit continue.

Greensill Capital’s secured creditors include Credit Suisse Group AG and the family business Greensill, while the Japanese group SoftBank Corp.

is one of the unsecured creditors. Representatives from the Australian Taxation Board, the Australian Securities and Investments Commission and the Association of German Banks also attended the creditors meeting.

A US spokesperson for Greensill declined to comment.

Founded by Australian-born Lex Greensill, the company touted itself as a tech startup that competed against traditional banks like Citigroup. Inc.

and JPMorgan Chase & Co. Greensill’s goal was to provide supply chain finance to businesses that had fallen under the radar of traditional banks that preferred a larger, more established customer base.

It got mired in crisis last month when Credit Suisse froze $ 10 billion in investment funds that Greensill relied on to fuel much of its business.

According to a report by Grant Thornton, insolvency experts handed over control of Greensill on March 8, with creditors filing claims for nearly $ 1.33 billion, or A $ 1.72 billion. SoftBank’s biggest claim is around $ 1.16 billion.

In addition, the Association of German Banks has filed a conditional claim of € 2 billion, or $ 2.41 billion, to cover potential losses if customers of Bremen-based Greensill Bank appeal to a fund that protects their deposits.

Insolvency specialists continue to see if any of Greensill’s assets can be sold to raise funds for creditors. Last month, a small fintech company called Earnd was sold to London-based Wagestream. The sale of another company owned by Greensill, digital lender Omni Technologies, is also being considered by Grant Thornton.

“At present, it is too early to determine whether there will be any feedback available from UK administrations,” said Grant Thornton, who has investigated a possible restructuring of Greensill, in his report to the Australian Meeting of Creditors.

Write to Alice Uribe at [email protected]

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Appeared in the April 23, 2021 print edition as “Greensill’s Australian Parent to Liquidate”.

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