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Parent company of British finance company Greensill goes into liquidation

The parent company of Greensill Capital, a British finance company whose bankruptcy last month shook many companies around the world and had political repercussions, was put into liquidation, its administrators said Thursday.

At a meeting held by the administrators of this bankruptcy with 41 creditors, including Softbank, Credit Suisse, the family foundation of founder Lex Greensill and the Association of German Banks, “the creditors decided to put the company into liquidation”, announced Grant Thornton, the cabinet in charge of managing the dossier.

The liquidation means that the managers found no buyers after a frustrated attempt to sell part of the assets to the US investment company Apollo.

In addition to the parent company in Australia, Greensill filed for bankruptcy last month in the UK, where it has the bulk of its operations, and in Germany, where it owns a banking subsidiary.

The bankruptcy of Greensill, which specializes in short-term loans to companies to pay their suppliers, triggered a wave of concern in the financial sector and in the industry.

In a scheme that may be reminiscent of the risky setups of the 2008 financial crisis, Greensill financed himself by converting the debt held by these companies into financial products that he sold to large investors.

Its downfall was caused by an insurer that refused to renew coverage for its transactions.

Its opaque structure and transactions raised suspicions of fraud and doubts about the value of its assets.

This bankruptcy caused heavy losses to Credit Suisse for example and threatens the industrial empire of Anglo-Indian steel magnate Sanjeev Gupta, who was one of its main clients and employs tens of thousands of people in Australia, France and the United Kingdom.

The case also has political ramifications in the UK, where former Prime Minister David Cameron was harshly criticized for putting pressure on the British government on behalf of Greensill, to whom he was an advisor, and has reignited the debate over cronyism in high places. of politics and finance.

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