Greensill Capital, a former high-flying financial company with former Prime Minister David Cameron as an adviser, is preparing to file for bankruptcy in the United Kingdom.
Those familiar with the matter said the submission would allow private-equity fund Apollo Global Management to purchase parts of its business out of control in “prepack” transactions.
The $ 455 billion deal in US private equity firms could wipe out shareholders such as SoftBank Vision Fund, which invested $ 1.5 billion in 2019.
Greensill lawyers warned this week that the recent loss of $ 4.6 billion in insurance policies could lead to a wave of customer defaults and 50,000 unemployment. Some of these customers said they were “likely to go bankrupt by defaulting on existing facilities” because the working capital funding was removed.
Supply chain finance, Greensill Capital’s flagship financial product, is controversial as critics say it can be used to disguise corporate borrowing growth.
Most of Greensill’s business is based in London, but its parent company is registered in the Australian city of Bundaberg, the hometown of founder Lex Greensill seeking relief from bankruptcy law.
Green sill The banking subsidiary, revealed by the Financial Times on Tuesday, is located in Germany and is under the control of Baffin, the Financial Supervisory Authority.
Greensill Capital is preparing to file for bankruptcy
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