Credit Suisse files lawsuit against Australia’s IAG over Greensill’s collapse

FILE PHOTO: Credit Suisse's logo is seen in Zurich, Switzerland
FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland February 21, 2022. REUTERS/Arnd Wiegmann

March 3, 2022

By Byron Kaye

SYDNEY (Reuters) – Credit Suisse Group AG has joined Greensill Capital’s creditors by filing a lawsuit in Australia seeking compensation from the country’s largest insurer over the collapse of the supply chain financier. response, court records show.

Local media put the total claim amount at AU$300 million (US$219 million).

Insurance Australia Group Ltd (IAG) was previously thought to be potentially damaged by Greensill in 2021 since former unit BCC Trade Credit sold the contracts to Greensill, but at the time it said no liability for having sold shares of this entity for two years. earlier.

However, lawsuits are growing against the Australian company, which is best known in its home country for property sales and car insurance.

The administrator of Greensill and US private lender White Oak Global Advisors, which is working with GFG Alliance of Greensill clients, each filed a lawsuit against IAG in late 2021, court filings show.

Credit Suisse then filed two lawsuits against IAG last month, records show. All four lawsuits have been brought together and have their first administrative hearings in Federal Court on Thursday, court records show.

The Australian Financial Review reports that the total amount claimed by the companies is close to A$300 million, about half of which is from White Oak. White Oak did not respond to a Reuters email seeking comment.

Credit Suisse was not immediately available for comment. Switzerland’s second-largest bank played a key role in Greensill’s downfall by suspending $10 billion in supply chain funds shortly before Greensill filed for default.

An IAG spokesperson said the company continues to believe it is not liable for BCC’s policies, that it “foresaw the possibility of litigation by Greensill administrators or others.” other claims” and will defend lawsuits.

(1 dollar = 1.3721 Australian dollars)

(Reporting by Byron Kaye; Editing by Kim Coghill) Credit Suisse files lawsuit against Australia’s IAG over Greensill’s collapse

Caroline Bleakley

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