Credit Suisse may take legal action against SoftBank over Greensill debt -court document

Dec 24 (Reuters) – Credit Suisse is seeking information through the U.S. courts which could lead to it taking legal action in Britain against SoftBank Group Corp to recover funds it says are owed to its Greensill-linked supply chain finance funds, U.S. court documents show.

Switzerland’s second-largest bank has been working to recover funds from the collapse of some $10 billion in funds linked to insolvent supply chain finance firm Greensill.

Credit Suisse (CSGN.S) declined comment, while SoftBank (9984.T) did not immediately respond to a request for comment.

The Swiss bank has been focusing on some $2.3 billion in loans provided by Greensill, which imploded in March, to three counterparties including SoftBank-backed Katerra, for which late payments have accrued.

Katerra filed for bankruptcy in June, and had estimated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion, according to court filings at the time.

In a petition filed on Thursday with a U.S. federal court in San Francisco, Credit Suisse is seeking information it said would support a lawsuit it plans to file against SoftBank and other affiliates in Britain over $440 million it says are owed by Katerra.

The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann

“The documents the Subpoena requests are relevant to an anticipated court proceeding in England against, among potentially other parties, SoftBank Group Corp. and certain of its affiliates including SoftBank Vision Fund LP, SoftBank Vision Fund II-2 LP, SVF Abode (Cayman) Limited, SVF II Abode (Cayman) Limited, and SVF Habitat (Cayman) Limited,” attorneys for the bank said in the filings.

Credit Suisse on Thursday filed a section 1782 Discovery, aiming to obtain documents and communications exchanged between SoftBank and Katerra. This statute allows foreign parties to apply to U.S. courts to obtain evidence for use in proceedings.

The Swiss bank is seeking to establish what SoftBank executives, including chair and chief executive Masayoshi Son, knew about Katerra’s restructuring plans by subpoenaing documents through the U.S. courts.

The Financial Times first reported the move on Friday.

Source: https://www.reuters.com/markets/europe/credit-suisse-may-take-legal-action-against-softbank-over-greensill-debt-court-2021-12-24/

World Economic Magazine

Recent Posts

Judge Blocks New York Labor Law in Major Win for Amazon’s Workplace Policy Battle

Amazon secured a key early win as a federal judge blocked New York from enforcing…

4 hours ago

Enthuse Foundation Announced Finalists for 7th Annual Women Founders Pitch Competition

The Enthuse Foundation has revealed the finalists for its 7th Annual Women Founders Pitch Competition,…

4 hours ago

2nd Edition Model Risk Management, Canada

The Marcus Evans 2nd Edition Model Risk Management, Canada conference taking place in Toronto, Canada…

1 day ago

‘Grow With China’ Event Highlights Shanghai’s Expanding Role in Global Economic Growth

Economists say Shanghai is strengthening its role as China’s reform engine, accelerating innovation and global…

1 day ago

U.S. Consumers Plan to Spend Nearly $80 Billion During Black Friday

U.S. shoppers are set to spend nearly $80 billion this Black Friday and Cyber Monday,…

3 days ago

Waiken’s $450 Million Bet on Latin America: A Strategic Push into Connectivity and Content

Waiken has unveiled a US$450 million investment plan through 2031 to strengthen its entertainment and…

3 days ago