Greensill Creditors, Led by Softbank, Make $1.4 Billion in Claims to Australia Parent

Thirty-four creditors of Greensill Capital Pty, the Australian parent of the collapsed British supply chain financier, submitted over A$1.75 billion ($1.35 billion) in claims to the company, administrators said on Friday, Reuters reported. About $1.15 billion of that was made by Japan’s Softbank Group, a source familiar with the situation told Reuters. The source declined to be identified as the person was not permitted to speak publicly. Grant Thornton, administrator to the Australian parent and its operating companies in the United Kingdom, also said the parent held claims of under $800 million against Greensill UK. Greensill’s Australian parent provided administration and head office support to the London-based group that collapsed earlier this month after losing insurance coverage for its debt repackaging business, but operates “only in a limited capacity”, they said. They had also been put on notice by the Association of German Banks about a contingent liability of close to 2 billion euros ($2.38 billion) to the Australian parent, Grant Thornton said in an emailed statement. Read more.

In related news, the Italian government guaranteed an 86 million euros ($102 million) loan from Greensill Bank, part of the collapsed Greensill Capital group, to one of steel magnate Sanjeev Gupta’s firms, according to accounts filed with the Italian corporate registry in recent weeks, Reuters reported. The firm, Liberty Magona SRL, secured a guarantee from SACE SpA, Italy’s state-controlled export credit agency, for the loan under measures to help companies navigate the coronavirus crisis, according to Liberty Magona’s accounts for a period from Jan. 1, 2019 to June 30, 2020 which include information on material post-yearend events. Piombino-based Liberty Magona, which makes galvanized steel, said the three-year loan was taken out in late August last year to strengthen its finances at a time when it was facing weaker demand for its products due to the pandemic. Read more.