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SoftBank Seeks $1.2 Billion in Greensill Collapse

  • Administrator Grant Thornton hosted creditors meeting Friday
  • Firm collapsed over doubts about the value of loans it made
SoftBank Stores As Group Poised to Return to Profit After Big Losses
Photographer: Toru Hanai/Bloomberg
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Greensill Capital owes more than $1.3 billion to creditors, with the bulk of those claims so far coming from the now-defunct fintech’s largest shareholder, SoftBank Group Corp.

SoftBank, which had already invested $1.5 billion in return for a stake in the company that is now practically worthless, is owed $1.15 billion, people familiar with the matter said. It’s not clear whether it lent that money to Greensill in addition to the equity investment, or whether the latter was structured in a way that allows it to try and recoup money in creditor talks.

In total, counterparties to Greensill submitted claims for more than A$1.75 billion ($1.35 billion), administrator Grant Thornton said in a statement Friday after a call between creditors concluded. The final tally may be significantly higher as further claims are made, and because some of the amounts submitted were placeholders while the actual damage is being determined.

The figures show Greensill owes money to some 34 creditors, including its own German banking unit and a family trust in the name of founder Lex Greensill’s brother, from which it had borrowed late last year as it struggled to raise new money ahead of a possible going public. SoftBank had injected equity in the firm in 2019 and put hundreds of millions of dollars into funds Greensill ran with Credit Suisse Group AG. It’s collapse leaves Masayoshi Son’s Vision Fund with yet another damaging loss.

SoftBank didn’t respond to requests for comment.