Apollo Ends Talks with Greensill Capital's Administrators

U.S. private equity company Apollo Global Management has ended talks with the administrators of British financing company Greensill after a JPMorgan investment in Greensill’s technology partner, Reuters reported. Greensill, which filed for insolvency earlier this week after losing the support of its main backers, employed around 1,000 people in the UK. Apollo was negotiating a $60 million acquisition of Greensill’s operating assets via its insurance arm Athene, the company said in its insolvency filing in a UK court earlier this week. However, after Taulia -- a San Francisco-based financial technology company that had worked closely with Greensill -- said on Wednesday it had secured more than $6 billion of funding from a consortium led by JPMorgan, the proposition became untenable. Taulia works with financial institutions to allow suppliers that use its platform to receive early payments on their delivered goods and services. It said the credit facility would provide its clients that formerly relied on Greensill funding continued access to liquidity. A source said Apollo had hoped to use the Greensill platform to fund some of its former clients, but this was a less attractive proposition now. Read more.

In related news, GFG Alliance head Sanjeev Gupta said on Friday the conglomerate was in talks with administrators of its former financial backer Greensill Capital on a so-called standstill agreement, Reuters reported. A standstill deal would mean GFG could pause its debt payments to Greensill, which filed for insolvency this week, for an agreed period of time. In its insolvency filing this week Greensill said that GFG, which is its largest client, warned in February that it would “collapse into insolvency” if the supply chain finance firm stopped providing it with working capital. “We are also having constructive discussions with Greensill’s administrators ... negotiating a formal standstill agreement,” Gupta said in an internal message to workers made available to Reuters by GFG. Such an agreement, Gupta said, “would put on hold arrangements between the two parties and allow both sides more time to assess and negotiate next steps”. GFG, an umbrella company for tycoon Gupta’s network of steel, aluminium and energy companies, told trade unions this week it had adequate financing to meet its current requirements, but was seeking long-term alternatives. Read more.