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Credit Suisse investors exposed to collapsed Greensill Capital fund are facing another $190 million of losses

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Credit Suisse
The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. Picture taken October 28, 2020.

Credit Suisse investors who were exposed to funds invested in assets sourced by collapsed financial firm Greensill Capital may face an additional $190 million loss on their holdings, according to Bloomberg.

A discount of roughly 7% will be applied to notes on a book of around $2.8 billion loans held in the funds, which will add to losses stemming from troubled borrowers including Katerra, BlueStone Resources, and GFG Alliance, reported Bloomberg, citing a Credit Suisse statement.

Greensill Capital filed for insolvency on March 8 as it couldn’t roll over insurance coverage for some of the products it sourced and packaged and couldn’t repay a $140 million loan to Credit Suisse. The firm specialized in supply-chain finance, a type of short-term cash advance to companies to stretch out the time they have to pay their bills.

Credit Suisse added that the valuation on the $2.3 billion notes linked to Katerra, Bluestone and GFG remain uncertain. Credit Suisse did not identify creditors that may not fully repay the loans.