Credit Suisse seeks to wind up Sanjeev Gupta’s commodity trading unit

LONDON (BLOOMBERG) - Credit Suisse Group is seeking to push one of Sanjeev Gupta's key commodities-trading units into insolvency, presenting a new threat to his metal empire after the collapse of his biggest lender. The application to wind up Liberty Commodities was filed in the UK's insolvency court late Tuesday (March 30) by a unit of Citigroup. Citi was acting under instructions from Credit Suisse, according to a person familiar with the matter who asked not to be identified discussing private information. The move marks a dramatic turn for the worse in Mr Gupta's battle to secure the survival of his corporate empire. For several weeks since Greensill Capital collapsed into insolvency, Mr Gupta and his GFG Alliance have been searching for new financing while simultaneously trying to persuade his existing lenders to hold off. And in another blow for Mr Gupta's embattled empire, Morgan Stanley and ICBC Standard Bank, two lenders to GFG's aluminum smelter in Dunkirk, France, have started talks with potential buyers of their loan exposure to the group, according to people familiar with the matter. An unnamed lender sought to sell US$7 million of the debt at 15 per cent discount on W...

Greensill Capital files for Chapter 11 bankruptcy in New York

NEW YORK (BLOOMBERG) - Greensill Capital filed for Chapter 11 bankruptcy protection for its US unit in New York, as another part of Lex Greensill's trade finance empire seeks safety from its creditors. The firm filed for administration in the UK earlier in March, capping a stunning collapse for the specialty finance firm after key backers walked away over concerns about the valuation of its assets. Greensill's Australian holding company also entered bankruptcy protection earlier this month, while Greensill Bank in Germany had its operations frozen in early March by German financial watchdog BaFin over potential balance sheet manipulation. Greensill Capital listed assets of as much as US$50 million (S$67.4 million) and liabilities of up to US$100 million in its US petition on Thursday. A spokesman for Greensill declined to comment further. The scandal has entangled a host of the world's biggest financial firms, from its largest investor SoftBank Group, to key partner Credit Suisse Group. The company's inner workings have been in the spotlight after it collapsed this month, raising questions about how it went from startup to tech unicorn with an estimated US$7 billion valuation. The ...

UK finance firm Greensill collapses into insolvency

LONDON (AFP) - Troubled UK finance firm Greensill has collapsed into administration after encountering serious financial difficulties, administrators Grant Thornton said on Monday, sparking fears over thousands of jobs worldwide. Greensill specialises in short-term supply chain financing for businesses, but itself faces funding problems and mounting questions over opaque and complex accounting methods. Administration caps a crisis-hit March for Greensill, whose collapse risks more than 50,000 jobs - including over 7,000 in Australia - across the group and its customers. "Chris Laverty, Trevor O'Sullivan and Will Stagg of Grant Thornton UK LLP were appointed as joint administrators of Greensill Capital (UK) Limited and Greensill Capital Management Company Limited," Grant Thornton said in a statement on Monday. "The joint administrators are in continued discussion with an interested party in relation to the purchase of certain Greensill Capital assets. "As these discussions remain ongoing, it would be inappropriate to comment further at this time." Sources close to the matter confirmed a Financial Times report that US private equity firm Apollo was seeking to buy parts of the group. ...