Greensill Capital, backed by SoftBank, is reportedly submitting for chapter
Masayoshi Son, Corp. chief executive officer, speaks during a joint announcement with Toyota Motor Corp. about a new company developing mobility services in Tokyo, Japan on October 4, 2018.
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LONDON – UK financial services company Greensill Capital has filed a motion to manage, according to a Financial Times report.
Greensill lawyers reportedly appeared in a UK court on Monday and said the company was in “dire financial straits” and could no longer pay its debts. Filing an administrative filing in the UK is designed to help a company pay off its debts and avoid bankruptcy. The company would be protected from legal action by creditors.
Greensill declined to comment when contacted by CNBC.
The US investor Apollo Global plans to buy some parts of Greensill’s business, according to the report.
Greensill, whose advisor is former UK Prime Minister David Cameron, provides capital to corporations and individuals around the world. Its website claims that “Funds are unlocked so the world can start,” and over $ 143 million was spent to over 10 million customers in 2020.
The company’s main financial product is supply chain finance, which companies can use to borrow money to pay their bills. However, critics argue that it can be used to mask rising debts.
Last week, Credit Suisse suspended Greensill-affiliated funds worth $ 10 billion and GAM Holdings closed its GAM Greensill Supply Chain Finance fund worth $ 842 million. The steps blocked Greensill’s access to capital.
Greensill was supported by SoftBank’s Vision Fund with $ 1.5 billion in 2019. There are reports that SoftBank’s stake is at risk of being wiped out entirely.
Read the full FT report here.