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.