Greensill Capital's Administrators File Lawsuits Against Several Former Directors
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Lex Greensill and other former directors of the defunct British financial firm, Greensill Capital, are facing fresh charges and lawsuits as the legal saga unfolds.
Greensill Capital, a UK and Australia-based company that provided supply chain financing services, crumbled in March 2021. The firm had been embroiled in a series of scandals, with former Prime Minister David Cameron, a senior adviser, being implicated in the controversy.
Now, the administrators of the collapsed company have escalated the situation by launching a new civil case against several directors, including Lex Greensill and six others. The claim, filed to the Business List of the High Court, is allegedly for breach of fiduciary duty. Grant Thornton, the firm's administrator, has declined to comment on the matter.
Last year, the UK Insolvency Service filed a director disqualification claim against Lex Greensill. If successful, this could prevent him from running or controlling companies for up to 15 years due to his conduct as a director of Greensill Capital (UK) and Greensill. However, Greensill had previously attempted to prevent the Financial Times from accessing documents related to his disqualification.
In a surprising twist, Greensill himself filed a claim in March 2024, accusing the Department for Business and Trade of misusing private information.
The collapse of Greensill Capital has led to a slew of legal actions. For instance, the administrator of Greensill Bank, owned by Greensill Capital, sued Zurich Insurance, claiming losses covered by the insurance company. The firm also faces numerous proceedings and investigations in Australia.
According to a recent report by the administrators, Grant Thornton, they were granted a high court extension that ends on 7 September 2026. Last year's administrator's report stated that around $587.2m (£472m) from Sanjeev Gupta's GFG Alliance was still owed. GFG Alliance was Greensill's biggest client, with an alleged exposure totalling $5bn at the time of the collapse.
In a broader context, the legal battle surrounding Greensill Capital is multifaceted. The UK Insolvency Service's disqualification proceedings against Lex Greensill are part of a wider investigation into the practices of Greensill Capital. Additionally, the administrator of a $10 billion Credit Suisse Supply Chain Fund has filed a lawsuit against Lex Greensill and six directors, possibly including claims related to the management and collapse of these funds.
Moreover, SoftBank, a major investor in Greensill Capital, has alleged in court filings that Credit Suisse ignored risks associated with Greensill Capital and failed to perform due diligence on proposals from Lex Greensill. This reflects broader concerns about the oversight and management practices within Greensill Capital's ecosystem.
Furthermore, in a potential development, UBS (which acquired Credit Suisse in 2023) offered to redeem investors of the collapsed supply chain funds at 90% of their net asset value in June 2024. However, not all investors accepted this offer, with some seeking full compensation through legal action.
In summary, the legal landscape remains steep and complex for Lex Greensill and other parties involved in the collapse of Greensill Capital and related financial instruments, with ongoing investigations and lawsuits at the heart of the issue.
- The administrators of Greensill Capital, led by Grant Thornton, have launched a new civil case against Lex Greensill and six others, allegedly for breach of fiduciary duty in 2021.
- In a surprising turn of events, Lex Greensill himself filed a claim in March 2024, accusing the Department for Business and Trade of misusing private information.
- The collapse of Greensill Capital has led to numerous investigations and lawsuits, including a case by the administrator of Greensill Bank against Zurich Insurance, claiming losses covered by the insurance company.
- In a broader context, the UK Insolvency Service's disqualification proceedings against Lex Greensill are part of a wider investigation into the practices of Greensill Capital, and the administrator of a $10 billion Credit Suisse Supply Chain Fund has filed a lawsuit against Lex Greensill and six directors.
