On Monday, Greensill’s parent company in Australia tried to secure a court injunction in Australia to prevent its insurer, IAG’s Insurance Australia Limited, from pulling coverage for loans extended to its business borrowers, to no avail. As such, in that case, the insolvency of Greensill does not crystallise any exposure for TMNF. That choice was fuelled by considerations Greensill was overexposed to 1 consumer, extensively believed to be numerous entities related to metal baron Sanjeev Gupta. IAG sale of BCC in spotlight amid Greensill collapse March 9 2021 by Andrew Tjaardstra. Hempton also cited the risk held by Japan’s Tokio Marine, which in 2019 acquired IAG’s 50 per cent stake in trade credit underwriter BCC, which had been the main underwriter to Greensill. As with the 2008 financial crisis, Greensill collateralised these debts into securities and sold them to investors. British supply-chain finance company Greensill Capital could file for insolvency and has appointed Grant Thornton to steer it through a likely restructuring, … Greensill has sought safety underneath Australia’s insolvency legal guidelines after Credit Suisse and one other group GAM Holdings froze the funds that have been central to Greensill’s business. Totalled about $1B at the time. Assuming it is (say) 10% of the claim, and (less presumptively) they can't make good this 10% over a few billion in losses, my uneducated guess is that the funds will take some decent losses if defaults start to mount. Insurance Australia Group has asked for trading in its shares to be suspended on the Australian stock exchange while it assesses its exposure to the collapse of financier Greensill Capital.IAG asked for the trading halt so it could "prepare a disclosure following enquiries regarding the impact of Greensill's insolvency".ASX-listed IAG is New Zealand's largest general insurer with about … The collapse of Greensill - which filed for insolvency in March - has threatened thousands of UK jobs at Liberty Steel, which was dependent on it for its financing. Greensill filed for insolvency on Monday after losing insurance coverage for its debt repackaging business and said that its largest client, GFG Alliance, had started to default on its debts. Greensill also offers a string of other products, including Earnd, an early-payment service which counts the NHS among its clients. Greensill Capital is seeking insolvency protection in Australia and a rescue deal with new and existing backers, after two Swiss banks announced they were closing funds linked to … Greensill’s funding therefore dried up and it was forced into insolvency. ... rather than what Greensill owes others. Greensill’s problem was it relied heavily on insurers to provide cover for the debt. Per Greensill's 2019 accounts, it reads to me like the insurance has a deductible and that they (Greensill) take this on themselves. High stakes. Greensill Capital is now preparing to file for insolvency, ... Greensill’s insurers had informed the company they had no intention of extending the coverage past March 1 this year. Since Greensill Capital is in insolvency, the options are limited. Grant Thornton said in a statement that three members of its restructuring team had been appointed as joint administrators of Greensill Capital (UK) Limited and Greensill Capital Management Company. As previously reported, Greensill was a supply-chain debt provider. Insurance Australia Group Ltd. has denied any net insurance exposure to the trade credit policies covering financial services firm Greensill Capital Pty Ltd., which filed for insolvency on March 8. As part of its insolvency process, Greensill is in talks to sell its core operations to Apollo Global Management APO -4.24% and its insurance affiliate Athene Holding Ltd. ATH 5.97%for around $100 million, The Wall Street Journal previously reported, citing people familiar with the matter. The company’s “plan B” is to file for insolvency in the UK. IAG and Greensill’s insolvency. Greensill Capital, which filed for insolvency in March after having operated for a decade, had clients including steel empire GFG Alliance which employs thousands of workers worldwide. Lex and Peter Greensill on the Bundaberg farm . The IAG as stupid teenage boy now grown up meme is one that I could get behind. Greensill’s looming insurance scandal has now also embroiled IAG after the supply chain financier launched court action against its insurers over the cancellation of its policies. Greensill specialised in reverse factoring, also known as supply chain finance. What led to it crashing into insolvency? Shares in IAG fell 10 per cent this morning as investors woke to the news. Insolvency Practitioners A quick look on Companies House confirms that Greensill Capital Management Company (UK) Limited (company number 08037769) appointed Administrators on the 08/03/21. It has been reported in several media outlets that over half of Greensill's business came from bundling and reselling accounts receivable of Sanjeev Gupta 's steel business, and that this is the cause of the company's insolvency problems. “As such, in that case, the insolvency of Greensill does not crystallise any exposure for TMNF. The rapid unraveling of Lex Greensill’s empire is … And Germany’s financial watchdog shuttered Greensill Bank after asking law enforcement officials to investigate accounting irregularities at the lender. The reason for the withdrawal of cover is still not 100% clear, but it seems that Greensill’s lending was (i) concentrated amongst a small number of clients, (ii) that there were potential conflicts of interest and (iii) that some of the lending was, in fact, much riskier longer-term lending. Its business model was to provide funds to suppliers awaiting accounts receivable in the form of a loan to the purchasing business. The financial dominos will now start falling with implications for companies like Sanjeev Gupta’s GFG Alliance, Tokio Marine and possibly IAG. In its documentation on the Greensill funds, the major Swiss bank has always pointed out that the credit risks are covered by insurers with high ratings. He handled the insolvency of a German unit of Lehman Brothers Holdings Inc. and that of Maple Bank GmbH in 2016. Credit Suisse froze and began winding down $10 billion of funds that bought products from Greensill, setting off a chain of events and that led to the collapse. LONDON — Greensill Capital filed for insolvency on Monday, its administrators said, days after losing investor funding and insurance coverage for its supply chain financing business. From Credit Suisse Group AG to SoftBank Group Corp., Greensill’s most ardent supporters have signaled doubts about the loans made by his supply-chain finance business, upending his multi-billion dollar empire. The insurers of the credit risks, the investors themselves, the taxpayers in Germany – or CS – come into question. The figures that have been reported in the media with respect to underwriting (such as “in excess of AUD 10 billion”) refers to the accumulated amount of the accounts receivable of Greensill, not exposure for TMNF,” explains Tokio Marine. Greensill Capital is planning to start insolvency proceedings in the U.K. as it seeks to sell its operating business to Athene Holding Ltd., the annuity seller backed by Apollo Global Management. The full economic impact of the Greensill insolvency is yet to be known, but alarm bells are ringing for borrowers, suppliers and regulators. Greensill filed for insolvency on Monday after losing insurance coverage for its debt repackaging business and said that its largest client, GFG Alliance, had started to default on its debts. Greensill Capital seeks insolvency protection in Australia and a rescue deal with new and existing backers, ... employs about 5,000 people in the UK and was one of Greensill’s largest borrowers. IAG and Greensill’s insolvency. 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