Credit Suisse preparing further insurance claims for Greensill-linked funds (updated)

Bluestone Resources

07/09/2021 12:18

(Adds further detail)
    By Brenna Hughes Neghaiwi
    ZURICH, Sept 7 (Reuters) - A first insurance claim has been
filed and more are being prepared in Credit Suisse's  CSGN.S 
efforts to recover funds from its insolvent supply chain finance
linked to Greensill, the Swiss bank said on Tuesday.
    The collapse of Credit Suisse's $10 billion worth of supply
chain finance funds in March kicked off a tumultuous period for
the bank, which together with a multi-billion dollar loss
related to family office Archegos prompted a raft of executive
oustings.
    "A first insurance claim has been filed and (Credit Suisse
Asset Management) is currently preparing to file additional
claims through Greensill Bank and with the assistance of
Greensill Capital UK," the bank said in a document on its
website. A spokesperson said no further information could be
provided regarding the insurance claims at this time.
    Credit Suisse has been working with advisors and external
experts to help recoup the funds, some $7.0 billion, or 70%, of
which have now been recovered, the bank said on Tuesday, up from
$6.1 billion in early July.  urn:newsml:reuters.com:*:nL5N2OE24R
    Around $5.9 billion of that has been returned to investors
so far after the last payment in August.  ID:nL8N2PD2A9 
    Even so, the pool of late payments had grown during the
period, with the bank saying roughly 85% of the outstanding
notes related to payment that had not been made on time. 
    As of end-August, the funds had accumulated some $2.5
billion in late payments, Credit Suisse said, $2.2 billion of
which were related to three single counterparties, the biggest
of them steel tycoon Sanjeev Gupta's GFG Alliance, which are
experiencing repayment issues.
    The bank expects the funds to accrue around $145 million
this year in recovery costs, it said on Tuesday, as it focuses
on some $2.3 billion in loans provided by Greensill to the three
counterparties, GFG, Katerra and Bluestone.  urn:newsml:reuters.com:*:nL2N2O50C4
 urn:newsml:reuters.com:*:nL1N2N10L2  urn:newsml:reuters.com:*:nL1N2PC0JO
    It said talks were ongoing regarding the refinancing and
restructuring of GFG's assets in the United States and Britain,
while discussions with West Virginia governor Jim Justice's coal
company Bluestone Resources were unlikely to yield any payments
or agreements before the fourth quarter.
    Tokio Marine's  8766.T  Australian unit has provided
insurance to speciality finance firm Greensill, but the Japanese
group has said it is investigating the validity of those
policies and, as of May, expected no material impact on its
earnings from the matter.  urn:newsml:reuters.com:*:nL1N2L80H5  urn:newsml:reuters.com:*:nT9N2MU02G  urn:newsml:reuters.com:*:nL1N2LM05Z

 (Reporting by Brenna Hughes Neghaiwi Silke Koltrowitz, Editing
by Michael Shields and Emelia Sithole-Matarise)
 ((silke.koltrowitz@thomsonreuters.com; +41 41 528 3638;))