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Cashed up: Greensill not broke yet thanks to $200m share sale prior to collapse

Business

It appears Lex Greensill will not be forced back to the Bundaberg sugar cane farm anytime soon after revelations that he and his family pocketed $US200m ($A256 million) from the company in 2019.

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London’s Financial Times said Greensill and his family sold shares in the company during a round of fundraising led by SoftBank Vision Fund which had also invested $US1.5 billion into the business.

Earlier this week the Australian employees of Greensills lost their jobs and it now appears the sale of parts of the business to Apollo Capital has also fallen through. About 500 jobs in the UK office likely to be lost.

It has been a steep fall for Greensills which had been attempting to list its business in either Australia or the UK at a $US7 billion valuation.

The FT said the Greensill family put $US60 million back into the business as a loan when it entered financial difficulties last year.

Credit Suisse had the biggest exposure to Greensills which included a $US140 million loan. It also had about $US10 billion tied up in notes it bought to finance Greensills supply chain financing business.

There have also been claims that 26 German towns were facing losses of about €255 million ($A390 million). The towns had their deposits in Greensills Bremen-based bank.

 

 

 

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