Posted on Dec. 2021 at 13:41
Credit Suisse’s legal offensive against SoftBank is turning a corner as the Swiss bank seeks by all means to recover the funds linked to the collapse of Greensill, in which the Japanese investment company was a shareholder.
According to the “Financial Times”, the bank on December 23 asked a US court to force an entity of SoftBank (SB Investment Advisers, based in California) to hand over documents to it, as it prepares to bring “in the coming weeks ”legal action in the UK against parties which could include SoftBank.
The business started with the collapse of reverse factoring specialist Greensill and the freezing of $ 10 billion in fintech-related funds last March. SoftBank was both the main investor in Greensill, but also in several companies that the fintech had as clients, in particular Katerra, a Californian start-up specializing in real estate.
$ 440 million
Greensill paid his clients’ suppliers, while the latter agreed to repay their debts on a schedule that allowed them to conserve their cash flow. He then replaced part of these receivables in the form of securities in funds managed in particular by the asset management division of Credit Suisse.
In this case, 440 million dollars that should normally have come to him, are at stake, according to Credit Suisse, which suspects possible conflicts of interest. SoftBank “orchestrated a financial restructuring of Katerra at the end of 2020” in which the two companies, along with Greensill, “inappropriately agreed to cancel Katerra’s debt program and claimed to waive the unpaid amounts in under this program ”which were owed to the Swiss bank. In exchange, Greensill received shares of an entity from Katerra.
Although the group headed by Masayoshi Son was not officially a party to the deal, “there is no doubt that SoftBank was aware of it,” Credit Suisse said, noting that the shares were later transferred to an affiliate. of SoftBank and that a managing partner of the Japanese group served on the board of directors of the company.