PR89665

LONDON, May 24, 2021/PRNewswire=KYODO JBN/--

Formation of International Investor Group

Overview

Boies Schiller Flexner (UK) LLP ("BSF") is building a group of investors across

Europe and Asia who invested in Credit Suisse's US$10bn Supply Chain Finance

Funds ("SCFFs").  It is intended that the group will pursue Credit Suisse,

including through litigation if necessary, to recover losses suffered with

respect to the investments made in or with Greensill Capital.

The firm takes the view that investors have credible claims against Credit

Suisse for misrepresentation and mis-selling, which should be brought in a

co-ordinated manner across jurisdictions. Investors should contact

greensill@bsfllp.com for further details.

Background

Credit Suisse entities pro-actively marketed and sold investments in the SCFFs

as cash-equivalent and low risk investments.  In fact, the SCFF assets were

notes backed by existing and future trade receivables originated and structured

by Greensill Capital.

In March 2021, Greensill Capital, the main trading entity and treasury company

for the Greensill group, ceased trading and went into administration. Whilst

facts continue to emerge, there appear to be multiple failures which led to the

collapse, including an over-exposure to certain businesses, financing of risky

future (as well as current) receivables, and an inability to maintain insurance

coverage.  

The SCFFs were closed by Credit Suisse on 1 March 2021 and the funds are being

liquidated.  It is anticipated that there will be a significant shortfall in

recoveries for investors into the funds.

The Investor Group

BSF is putting together a group of international investors to pursue a cohesive

and proportionate litigation strategy to recover losses, namely the shortfall

that will not be met through redemptions from the Greensill estate.  This

litigation strategy is anticipated to span relevant jurisdictions across Europe

and Asia, with BSF acting as global litigation counsel.  

Investors will be eligible to join the investor group if they held (as at 1

March 2021) or hold (at the time of participation in the group) shares or

interests in shares in the SCFFs, being: (i) Credit Suisse (Lux) Supply Chain

Finance Fund, (ii) Credit Suisse Nova (Lux) Supply Chain Finance High Income

Fund, (iii) Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade

Fund, and (iv) Credit Suisse Supply Chain Finance Investment Grade.

There is no jurisdictional restriction: investors across Europe and Asia are

able to join the group.

The Litigation Strategy

A cohesive investor group acting together will be well-placed to maximise

recoveries with respect to the SCFFs, and protect interim value. Whilst there

is uncertainty as to recoveries via the Greensill estate and losses have not

yet crystallised, the litigation strategy is designed to recover losses for

which Credit Suisse is responsible – both through the sale of the securities as

well as its management of the portfolio.  The litigation will focus on

mis-selling claims against Credit Suisse entities involved in the structuring

and sale of investments, mis-management claims regarding the SCFFs investments,

and, potentially, broader conspiracy and other tortious claims.  

It is anticipated that litigation will be brought in England and potentially

Luxembourg and/or Switzerland, making use of case management procedures to

maximise the efficiency of a group of investors acting together.

BSF can provide detailed advice once an investor is a member of the group (and

subject to diligence of the investor's interests in the SCFFs).

Risk / Secondary Trading

There is significant interest in both third party funding of litigation and of

secondary trading in the shares and litigation rights.  BSF is working with

various parties in this regard.  Investors interested in secondary trading

should take advice to ensure rights and claims are transferred.  BSF can

provide further details to interested parties.  

The BSF team can also arrange third party funding for interested investors,

creating zero economic risk in the bringing of proceedings to recover their

losses.

BSF

BSF is an elite litigation practice with significant experience in creditors'

rights, class actions and strategic litigation in restructuring and insolvency

matters.  It has a track record of delivering value for its clients through

strategic litigation in England and across Europe.  BSF and its lawyers have

created value for investors through cohesive litigation strategies in respect

of the Icelandic banks (Kaupthing, Glitnir, Landsbanki), Lehman (US and UK),

bank restructurings and collapses in the UK, Ireland, Cyprus, Greece, Spain,

Portugal and Austria, and multiple corporate restructurings. It is currently

litigating against Credit Suisse before the English Courts, with respect to the

Proindicus debt.

The BSF team will be led by Natasha Harrison, Deputy Chair and Managing Partner

of BSF, and Fiona Huntriss, Partner.  BSF is working with Luxembourg, Swiss and

other local counsel.

CONTACTS:

Media:  

Camarco

Julia Tilley, Associate Partner

+44-(0)7815-068-387

Investors:  

Natasha Harrison: nharrison@bsfllp.com

BSF Greensill team: greensill@bsfllp.com

SOURCE: Boies Schiller Flexner LLP