Credit Suisse investors, who are already suffering billions of losses from the bank’s defunct supply-chain finance funds, may need to cough up $145million, as the bank tries to keep Greensill Capital alive.
The Swiss lender plans to ask investors for $145 million this year to finance its efforts to retrieve money from its Greensill losses, according to a report by the «Financial Times» (behind a paywall).
So far Credit Suisse investors have received payments close to $7 billion out of a total of $10 billion. The bank has previously said that a further $2,3 billion might be difficult to claw back.
Unavoidable Costs
By keeping Greensill Capital afloat, Credit Suisse can claim for non-payment of invoices under the company’s insurance policies, which is why $10 million of the $145 million would flow to Greensill directly. The insolvent company still has around 100 to 150 staff, the newspaper writes.
