Coal Miner’s Lawsuit Shines Light On Greensill’s Unusual Methods
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A U.S. lawsuit is shining a light on how Greensill Capital drifted from the pedestrian world of working capital finance to a more speculative business.
The suit, in which coal miner Bluestone Resources Inc. alleges it was defrauded by Greensill, says the U.K.-based firm would lump in loans based on actual receivables with those made against purchases that had not yet occurred. Bluestone said Greensill made specific predictions about who would buy the company’s coal in the future and for how much, and then would make loans against those forecasts as if the sales had happened.