Scandal-hit Greensill parent group enters liquidation

LONDON (AFP) – The Australian parent of failed specialist finance firm Greensill Capital Pty Ltd, whose recent collapse sparked worldwide corporate fallout and a political scandal in Britain, has entered liquidation, administrators said yesterday.

The demise of Greensill Capital Pty Ltd is the latest chapter in a saga that has ensnared Conservative politicians including ex-prime minister David Cameron.

The company had filed for bankruptcy last month for its operations in Britain, and also in Australia where its parent group is based and Germany where it has a banking arm.

Greensill’s implosion threatens about 50,000 jobs at companies that relied on its supply chain financing, including the steel empire of Indian-British billionaire Sanjeev Gupta.

Greensill Capital Pty Ltd, which is the parent company of the Global Greensill Group, had provided head office support and sourced funding for the finance giant’s operations. Creditors including Credit Suisse, Japan’s SoftBank and the Association of German Banks met online early yesterday and “resolved to place the company into liquidation”, according to a statement from administrators Grant Thornton.

Administrators will wind down Greensill activities and attempt to sell off parts of the business, which was founded in 2011 by Australian Lex Greensill Oli. PHOTO: AFP

The administrator provided an overview of the company to its 41 creditors and their representatives, who then voted in favour of liquidation.

Administrators will now wind down activities and attempt to sell off chunks of the business, which was founded in 2011 by Australian Lex Greensill.

“As of yesterday, the company is now in liquidation,” Grant Thornton added in the statement.

“The liquidators will continue to identify and realise available assets, monitor developments in relation to the administrations of Greensill UK and the Greensill Bank AG, and continue their investigations in relation to Greensill Capital Pty Ltd in liquidation.”