Credit Suisse has frozen $ 10 billion in funds linked to Greensill Capital, adding to the pressure on the controversial finance company, which is backed by SoftBank and advised by former UK Prime Minister David Cameron.
The Swiss bank’s decision to suspend investment vehicles deprives Greensill of a key source of funding and left the London-based group, which in turn is one of the biggest lenders to metals magnate Sanjeev Gupta, jostling for alternatives.
Apollo Global Management is in talks on a potential deal to select some of Greensill’s best assets, according to people familiar with the matter. Such a deal to carve out a business to operate Greensill would not include any investment related to Gupta, the people added. The Wall Street Journal reported earlier Monday that parts of Greensill that Apollo is interested in could fetch $ 100 million.
Credit Suisse said it had “suspended redemptions and subscriptions” of funds “to protect the interests of all investors”. He added: “A certain part of the [funds’] assets are currently subject to considerable uncertainties as to their fair valuation. “
Greensill said he “recognizes the decision” to “temporarily” suspend funds, adding: “We remain in advanced talks with potential outside investors in our company and hope to be able to keep abreast of this process in such a way. imminent. ”
Credit Suisse’s concerns about funds came to a head because insurance policies…
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