The Swiss bank is looking to recoup money from collapsed Greensill Capital via its insurance, the Financial Times reports, but this won't be quick and easy.
Credit Suisse is preparing to recoup some of the losses from its $10 billion of funds invested in collapsed supply-chain finance company Greensill Capital by claiming on the insurance, the «Financial Times» (behind paywall) reported Wednesday, citing people with knowledge of the process.
Long Process
The insurance was primarily from Japan’s Tokio Marine. The funds invested in packaged-up invoices sourced by Greensill, which arranged insurance against non-payment. Greensill fell into administration in March after its main coverage, provided by a Tokio Marine unit expired.
«The whole process takes a long time, so we want to cover all bases in order to reclaim investors’ funds,» a person with knowledge of Credit Suisse’s plans told the FT. «In a situation like this where there’s a lot at stake, you want to make sure that all the Is are dotted and Ts crossed from a legal perspective. You want to make sure they are not going to be thrown out on a technicality.»
Validity In Dispute
Tokio Marine said in March that it was questioning the validity of the cover, after a criminal complaint against the management of Germany-based Greensill Bank by the financial regulator Bafin.
Tokio Marine has repeatedly said it does not expect any material impact from the Greensill collapse. The FT quoted its sources as saying that although Greensill arranged the insurance, Credit Suisse paid the premiums and was entitled to claim. Credit Suisse declined to comment to the FT.
