The remaining principal of 240 million Australian dollars, including interest, should be repaid by mid-2023 at the latest.
“We are continuing to work hard on the repayment and will make a sixth cash distribution in due course,” wrote the big bank. In the meantime, in addition to the monthly Q&A and portfolio updates, further developments regarding the repayment will be provided as soon as these have been formalized and fully implemented.
The steel conglomerate of the industrialist Sanjeev Gupta agreed to reschedule with Credit Suisse Asset Management (CSAM) last week as part of a restructuring plan for the Australian subsidiary Liberty Primary Metals. With the transaction, Liberty could obtain stable financing and secure a recovery plan for the creditors, it said in the announcement.
“This is good news for investors in the SCF funds (supply chain finance funds) and proof that assets from the” focus areas “can be recovered,” wrote the CS on Thursday (today). The GFG Alliance announced last week that the remaining amount should be paid in installments to CSAM and the German Greensill Bank, which is under insolvency administration, by June 2023.
CS Asset Management has been in negotiations with Gupta’s steel group GFG Alliance for months. The GFG Alliance’s debt securities are among the so-called problematic “focus areas” of the “supply chain finance funds” that CS ran together with Greensill Capital. In addition to the GFG Alliance, this also includes the companies Bluestone and Katerra, which together represent a commitment of around 2.3 billion dollars.
Of the fund assets totaling a good 10 billion dollars at the time of the suspension, CS has so far returned 6.3 billion dollars to the fund’s creditors. Including the cash remaining in the fund, CS has so far received 7 billion or 70 percent of the assets back.
The CS supply chain financing funds created with Greensill Capital invested in receivables from suppliers to companies: Instead of waiting for a delivery to be paid, suppliers such as the GFG Alliance sold the receivables to Greensill Capital at a discount. The now insolvent Greensill bundled such claims and brought them into the “supply chain finance” fund. Apparently they should have paid money on non-existent or non-existent claims.