Stenn - Case Update

Jim Tucker, Joshua Dwyer and Kristina Kicks of Interpath Advisory, the joint administrators of Stenn International and Stenn Assets UK, have released their proposals outlining their initial views on what led to the trendy fintech’s collapse and addressing recent allegations of potentially suspicious transactions.

The companies were founded in 2015 and operated as two units of a London-headquartered global fintech group and digital trade finance provider. They provided invoice discounting services, purchasing receivables at a discount from sellers in emerging markets.

At its height, Stenn was valued at approximately $900 million. The company had about 200 employees and contractors as at the date of administration on 4 December 2024.

Stenn International and Stenn Assets UK were placed into administration on application by secured creditor HSBC Innovation Bank. HSBC reportedly became concerned after US authorities unsealed criminal indictments in a money laundering case that referred to Stenn and its Russian founder and chief executive Greg Karpovsky. After conducting an investigation, HSBC discovered potentially suspicious transactions with large customers in Taiwan and Japan.

In their proposals, the joint administrators do not comment substantively on the allegations. They do, however, acknowledge that press articles have publicly reported “allegations concerning potential irregularities prior to insolvency”, and ask creditors to bring any relevant information to their attention.

The joint administrators also reveal that, whilst they have suspended the origination of new invoice financing, they continue to trade the business to collect the outstanding receivables book, valued at US$978 million according to the company’s books and records. The 44 employees who have been retained by the administrators are assisting to collect these receivables.

The return to HSBC (the only secured creditor, who is owed approximately US$35.3 million) remains uncertain at this time, and it is also uncertain whether preferential, secondary preferential and unsecured creditors will receive a dividend.

HSBC is represented by Mayer Brown. The joint administrators have been assisted by Ashurst.

Read the administrators’ proposals here.