Two persons familiar with the situation said on Thursday that Credit Suisse (CSGN.S) has applied to the English High Court to begin official legal proceedings against Japan’s SoftBank Group Corp (9984.T) in a $440 million dispute over Greensill-linked funds.
The second-largest bank in Switzerland is attempting to recoup customer monies that were given to Katerra, a SoftBank-supported American construction company that declared bankruptcy last year, by the defunct finance company Greensill Capital.
The action is a part of the bank’s attempt to recover unpaid debt from the loss of nearly $10 billion in client funds connected to Greensill Capital, the supply chain finance company that collapsed last year and was owned by financier Lex Greensill.
According to court documents submitted in the United States in 2021, the bank asserts that SoftBank was aware of a Katerra restructure in 2020 that essentially put Credit Suisse’s investor assets out of reach.
On the other hand, SoftBank rebuffed the attempt to file a lawsuit in England on Thursday, calling it a “desperate attempt to blame SoftBank for its own subpar investment decisions.”
A SoftBank representative issued a statement saying, “We strongly reject any misguided suggestion that any SoftBank entity ever intended to, or actually did, harm the interests of Credit Suisse or its funds and we will vigorously defend any claim relating to this matter should a claim actually be brought.
A lawsuit that the bank planned to bring against SoftBank and other affiliates in England for the money it claimed Katerra owed was owed was the subject of a petition that the bank filed in the United States late last year.
What SoftBank leaders, including chair and CEO Masayoshi Son, knew about Katerra’s restructuring plans is what the Swiss bank is attempting to ascertain – Business News
On Thursday, Credit Suisse declined to comment.