Credit Suisse Group AG (NYSE: CS) pays $750 million more to the investors in association with supply chain finance funds linked with Greensill. The asset management arm said on Friday that so far, it has recovered $6.1 billion out of the $10 billion in funds having back of Greensill Capital, the insolvent supply chain finance company. This represents a little push over $5.9 billion since May-end.
The collapse of Greensill Capital fund: A turbulent time for bank
The Greensill fund collapsed in March, starting the turbulent ride for the bank. This also left the top management fighting for the bank to keep it in a sane and intact position. The new repayments were planned for July 5, and as a reprise to investors, will lead to liquidation proceeds of $5.6 billion. Furthermore, liquidation proceeds are to be paid out in future installments to the investors. However, in its note to Reuters, Credit Suisse said that it could not provide a concrete pay-out deadline at the time.
Focus on $2.3 billion in loans
Currently, the bank is focused on $2.3 billion in loans provided by Greensill to single counterparties. These are three of the counterparties, GFG Alliance of Sanjeev Gupta being one of the biggest of them all. All these parties are now facing repayment issues. Credit Suisse said that about $2.3 billion has accumulated in late payments until June 29. Thus, $1.8 billion is associated with the focus area, which comprises three main groups or counterparties. The rest of the $500 million is associated with single-counterparty.
The bank, as of now, is having discussions with Sanjeev Gupta, the mining tycoon having more than $1.2 billion exposure of the funds to GFG Alliance. It is also the representation of the single largest at-risk assets pool.
Additionally, the bank has also held discussions with Katerra, the start-up firm backed by Softbank. This includes exposure of more than $440 million. Furthermore, Bluestone Resources, the coal company of West Virginia governor Jim Justice, has an exposure of more than $690 million.