Financial

Credit Suisse Identifies $2.3 Billion at Risk in Greensill Funds

credit-suisse-identifies-$2.3-billion-at-risk-in-greensill-funds

Credit Suisse Group AG flagged around $2.3 billion in problematic loans in its Greensill Capital funds, giving investors in the funds a more concrete sense of the size of their potential losses from the U.K. firm’s demise.

The Swiss bank is liquidating $10 billion in a group of funds it ran with Greensill. In a Tuesday update, Credit Suisse said so far it has gotten $5.4 billion back for investors.

The bank said three borrowers are “driving the valuation uncertainty” in the remainder of the four funds’ investments. The three borrowers are metals magnate Sanjeev Gupta’s GFG Alliance; West Virginia Gov. Jim Justice’s coal company, Bluestone Resources Inc. ; and SoftBank Group Corp. -backed construction startup Katerra.

GFG companies owe the funds $1.2 billion, while Bluestone owes $690 million. Katerra owes $440 million.

The bank is working to recover the amounts it identified, but it isn’t yet clear how much it will eventually get back.

The bank said three borrowers are “driving the valuation uncertainty” in the remainder of the four funds’ investments. The three borrowers are metals magnate Sanjeev Gupta’s GFG Alliance; West Virginia Gov. Jim Justice’s coal company, Bluestone Resources Inc. ; and SoftBank Group Corp. -backed construction startup Katerra.

Source: https://www.financialnewsherald.com/2021/04/14/credit-suisse-identifies-2-3-billion-at-risk-in-greensill-funds/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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