A judge in London ruled that Credit Suisse can proceed with its plan to wind up three companies belonging to Sanjeev Gupta's GFG Alliance.
Finally some good news for Credit Suisse. The scandal-plagued Swiss lender got the go-ahead to pursue the winding up of a trio of companies controlled by Sanjeev Gupta related to debts amounting to over one billion dollars, «Bloomberg» (behind paywall) reported Thursday.
In May, Credit Suisse broke off negotiations with Sanjeev Gupta’s GFG Alliance, triggering insolvency hearings in a U.K. court. GFG owes Credit Suisse investors over $1 billion after it borrowed from a group of funds linked to Greensill, which collapsed spectacularly.
London Ruling
A judge in London said Credit Suisse can go ahead with its case. Unable to use rules enacted to protect companies during the Corona pandemic, «the demands made on the companies over a year ago have not been met,» the judge ruled, and «it is likely that a winding down order will be made.»
In October GFG paid Credit Suisse some of the money owed by its business in Australia, as finews.com reported. The deal called for GFG to pay back a third of the $274 million the Australian unit owed, with the remainder to be paid monthly, with interest, by the middle of next year.
Injections of Shareholder Capital
For its part, GFG said the court case will proceed later this year and «we will defend our position vigorously and we have evidenced our commitment to our U.K. businesses with injections of shareholder capital since October 2021,» according to the report.
Credit Suisse declined to comment to Bloomberg.
