Greensill administrators strike £71 million auditor settlement

Chris Laverty, Will Stagg and Russell Simpson of Grant Thornton, the joint administrators of collapsed finance firm Greensill Capital Management, have secured a £71 million settlement with former auditor Saffery, marking one of the most significant recoveries to date in the sprawling collapse of the supply chain finance group and providing a material boost to creditor prospects.

The settlement, disclosed in the administrators’ latest progress report, resolves claims arising from Saffery’s audit work between 2014 and 2019 and was reached on a confidential basis, with proceeds already received into the estate. The recovery forms part of a broader litigation and asset realisation strategy that continues to underpin distributions across the Greensill insolvencies, which have been ongoing since March 2021.

The report highlights that litigation remains a central pillar of the administrations. In addition to the auditor settlement, the administrators continue to pursue claims against former directors and other third parties, while also engaging in proceedings linked to insurance coverage and regulatory investigations. Certain claims have already resulted in partial recoveries, including funds tied to historical swaps and insurance-related actions.

Despite the scale of recoveries achieved, creditor outcomes remain uncertain. The administrators estimate unsecured claims at approximately $1.6 billion for Greensill Capital (UK), underscoring the significant shortfall that persists even after substantial asset realisations. Dividend prospects will ultimately hinge on the success of remaining litigation and the resolution of complex creditor and intercompany issues.

The administrations have benefited from external funding support to pursue claims, including litigation funding arrangements that have enabled the estates to advance high-cost recovery actions without depleting available cash for distributions.

Read their latest report here.