Credit Suisse Asset Management continues to make progress on its supply chain finance fund payments by signing an agreement with mining firm Bluestone Resources.
Credit Suisse Asset Management (CSAM) has reached an agreement with Bluestone Resources for a plan for cash payments to noteholders, including the bank's supply chain finance funds, as well as to secure Bluestone’s mining operations, according to a statement.
Under the agreement, Bluestone has committed to making recurring payments to noteholders from free cash flow generated since June 2022, up to a maximum amount of $320 million. The payments will be shared between all noteholders, effectively allocating 81 percent of the total to Credit Suisse's two supply chain finance funds. In addition, Bluestone chief executive James C. Justice III has also agreed that the sale of any of the mining firm’s entities would be shared between the Justice family and noteholders.
On outstanding balance following any sale of the Bluestone entities, CSAM said it «intends to seek recovery through enforcement of its rights, including under the relevant insurance coverage» with $850 million outstanding, including $690 million due to the two supply chain finance funds.
Recovery Progress
According to CSAM CEO Ulrich Körner, $7.3 billion has been recovered thus far out of the total $10 billion in net asset value at the time of the funds’ suspension.
«We would like to thank the Justice family and their team for the professional way in which they have approached these negotiations,» Körner said. «We commend the skill and speed with which Bluestone has managed to improve efficiency and create the conditions which have made it possible to agree to repay, over time, a substantial proportion of the debt owed to [supply chain finance] fund investors.»
