As the Swiss bank is zeroing in on the most troublesome obligors in its Greensill funds, it is finding the remainder not as easy to recoup.
Zurich-based Credit Suisse has secured $7.1 billion in cash from its Greensill line of funds, or roughly 72 percent of the total before the Swiss bank pulled the plug in March, it said in an update on its website on Thursday. It has thus far returned nearly two-thirds of the total to the fund's investors, primarily wealthy clients of its private bank.
This leaves the Zurich lender with the nub of the matter: creditors Katerra, Bluestone, and Sanjeev Gupta's GFG group of companies. Credit Suisse is pulling out all the stops to retrieve $2.3 billion owed by these three, including filing insurance claims as well as demands of Greensill's bank in Germany and its now-defunct U.K. supply chain finance arm.
Spending To Recover
Credit Suisse has already spent $145 million in these retrieval efforts. On Thursday, it disclosed that this doesn't include spending on a host of issues related to the recovery like legal fees, insurance, administration, or fund management – these costs will now be absorbed by Credit Suisse and not disclosed separately.
Last week, the bank last week said it marked up the fair value of an outstanding $90 million loan to Greensill in the U.K. to $64 million, from $56 million three months ago. It also said it added 568 million Swiss francs ($621 million) to its reserves for legal matters in the third quarter, due in part to the supply chain fund problems.
