Credit Suisse could take legal action against SoftBank over Greensill debt – court document

(Reuters) – Credit Suisse is seeking information from U.S. courts that could lead it to take legal action in Britain against SoftBank Group Corp to recover funds it claims are owed to its fundraising funds. supply chain linked to Greensill, according to US court documents.

Switzerland’s second-largest bank is struggling to recover funds after the collapse of some $ 10 billion in funds linked to insolvent supply chain finance company Greensill.

Credit Suisse declined to comment, while SoftBank did not immediately respond to a request for comment.

The Swiss bank focused on some $ 2.3 billion in loans from Greensill, which imploded in March, to three counterparties, including Katerra, backed by SoftBank, for which payment delays have accumulated.

Katerra filed for bankruptcy in June and had estimated liabilities of $ 1 billion to $ 10 billion and assets of $ 500 to $ 1 billion, according to court documents filed at the time.

In a petition filed Thursday in a U.S. federal court in San Francisco, Credit Suisse is seeking information that it says supports a lawsuit it plans to bring against SoftBank and other affiliates in Great Britain. Brittany for more than 440 million dollars which he believes would be owed by Katerra.

“The documents requested by the subpoena are relevant to an anticipated legal proceeding in England against, among other potentially parties, SoftBank Group Corp. and certain of its affiliates, including SoftBank Vision Fund LP, SoftBank Vision Fund II-2 LP, SVF Abode (Cayman) Limited, SVF II Abode (Cayman) Limited and SVF Habitat (Cayman) Limited, ”said lawyers for the bank in documents.

Credit Suisse on Thursday filed a Section 1782 Discovery, seeking documents and communications exchanged between SoftBank and Katerra. This law allows foreign parties to apply to US courts to obtain evidence to use in the proceedings.

The Swiss bank is seeking to establish what SoftBank executives, including Chairman and CEO Masayoshi Son, knew about Katerra’s restructuring plans by citing documents in U.S. courts.

The Financial Times first announced the move on Friday.

Reporting by entrepreneur Sabahatjahan, Brenna Hughes Neghaiwi and Nate Raymond; Editing by Alexander Smith

About Brandon A. Hood

Check Also

Markets live, Thursday, May 12, 2022

Cryptocurrency trading platform Coinbase lost half of its value over the past week, including its …