Greensill Capital Management - Case Update

Chris Laverty, Will Stagg and Russell Simpson of Grant Thornton, the joint administrators of collapsed finance firm Greensill Capital Management, have recovered a further £41 million for creditors in the last six-month reporting period.

Due to the confidential and sensitive nature of some of the asset recovery work, the administrators are limited in what they can disclose about their recovery efforts. However, they are providing regular information updates to the creditors’ committee, who have entered into confidentiality agreements to preserve the confidentiality of the information.

In April of this year, the administrators shared that GFG Alliance, Greensill’s biggest client, owed Greensill $587m (£472m). GFG Alliance, the steelmaker empire of Sanjeev Gupta, has recently made headlines for its financial troubles, with Mr Gupta being prosecuted by Companies House for failing to file accounts for more than 70 companies.

The administrators have now revealed that no recoveries have been made on this loan during the reporting period and that the outstanding balance remains the same. The administrators are working towards a consensual settlement with Mr Gupta that would result in below par recovery to Greensill funded by both lump sum and bullet repayments.

Legal work in respect of the proposed consensual settlement has been supported by a capped funding indemnity in respect of the diligence and legal costs incurred by Greensill. However, this funding has recently been exhausted, with no further funding having been provided by GFG. The administrators are continuing to consider recovery options, including under the security and guarantees granted by GFG, and are working with an independent restructuring advisor, but cannot provide further details so as to not prejudice their position.

The administration is currently due to end on 7 March 2025, but the administrators have already indicated that they will require a further extension beyond this date. The administration will end by converting to a CVL as it is expected that there will be sufficient funds to make a distribution to unsecured non-preferential creditors.

The administrators’ latest report can be found HERE. They have been assisted by Hilco (agents) and Allen & Overy, Faegre Drinker and Linklaters (legal), among others.