Credit Suisse Group AG said Tuesday that it may incur a charge related to the collapse of Greensill Capital and the liquidation of its supply-chain finance funds managed by Credit Suisse’s asset-management division.
The Swiss bank said it recently recovered $50 million from a $140 million bridge loan it made to Greensill Capital last year, reducing its outstanding collateralized loan to $90 million.
“While these issues are still at an early stage, we would note that it is possible that Credit Suisse will incur a charge in respect of these matters,” it said.
Credit Suisse said the priority remains recovering funds for CSAM’s investors and that initial redemption payments totaling $3.1 billion have been made beginning March 8. Further cash distributions will be announced over the coming months, the bank said.
Last week, Greensill Capital filed for insolvency protection after regulators took over its banking unit and Credit Suisse froze investment funds that were critical to the startup’s operations. The firm is specialized in supply-chain finance, a form of short-term cash advance for companies to stretch out the time they have to pay their bills.
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Source : MTV