Credit Suisse completed the liquidation of a second Greensill fund and will return funds to clients. That is the good news. Billions of dollars remain blocked.
Credit Suisse said Thursday that $256 million from the Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade Fund will now be returned to investors, closing another page in the Greensill debacle.
First Liquidation in November
That represents more than 99 percent of the intrinsic value when the fund was forced to close in March 2021, with the cut-off date for the current valuation being February 6.
As reported by finews.com in November, the last money from the Credit Suisse Supply Chain Finance Fund Investment Grade Fund was liquidated. Fund assets totaling $667 million, were also repaid almost in full at the time.
Tough Negotiations
However, the two investment-grade funds are the two smaller of a total of four Greensill funds. The «focus areas» with loans from defaulting debtors are heavily weighted toward the two remaining larger vehicles.
Credit Suisse is engaged in protracted negotiations with insurers and, in connection with the debtor Katerra, has taken legal action to make money available for the funds. A total of $2.3 billion in fund assets remain outstanding.
Credit Suisse originally blocked more than $10 billion in its Greensill funds.
