The Swiss bank is poised to pay back more money to investors nursing losses on dud supply chain funds. Meanwhile it is racking up considerable costs in trying to recoup client money.
Zurich-based Credit Suisse will make return more money from a $10.1 billion line of funds that it pulled the plug on in march, it said in an update on its website on Thursday. The Swiss bank four weeks ago began homing in on the most troublesome obligors of the funds: creditors Katerra, Bluestone, and Sanjeev Gupta's GFG group of companies.
«The sixth payout of liquidation proceeds is currently planned for December,» the bank said. «More detailed information on the expected payout amount and value date will be communicated in due course,» Credit Suisse said.
Absorbing Costs
It had secured $7.1 billion in cash from its Greensill line of funds, or roughly 72 percent of the funds' total last month. It has thus far returned nearly two-thirds of the total to the fund's investors, primarily wealthy clients of its private bank.
Credit Suisse also disclosed that its spending to recoup money from the obligors – $145 million so far – doesn't include an array of costs like fees for administration, recovery, insurance, trustee fees and expenses, external counsel fees, or project management, and recovery support. These internal costs will be «absorbed by Credit Suisse,» the bank said.
