Credit Suisse Aims to Recoup Most Greensill-Linked Fund Assets

Switzerland’s second-largest bank last month closed around $10 billion of supply-chain finance funds that bought notes from Greensill. Of this, $3.1 billion has been repaid and $1.5 billion in cash was in the funds as of March 29, leaving more than $5 billion outstanding.

“Over time, we expect the majority part of the funds’ investments to be recovered in the liquidation process, and we have recourse to other measures should they be necessary, including possible legal action.

“We continue to explore other options for expediting the return of cash to investors,” it said in a notice to investors dated March 31 and posted on its website.

The bank had also suspended four other Credit Suisse Asset Management (CSAM) funds that had invested in the supply chain finance funds.

To reopen these funds for valuation, subscriptions and redemptions, the illiquid part of the funds’ assets will be separated and “side pockets” will be created, it said.

For this illiquid part, clients will receive a separate share class. The side pocket share classes will be subsequently liquidated and paid out in cash.

“Subscriptions and redemptions of the original share classes reflecting the liquid part of the funds’ assets will resume as of April 7, 2021,” it said.

(Reporting by Michael Shields; editing by Jason Neely and Barbara Lewis)