Greensill parent enters liquidation

Creditors have voted to liquidate Greensill Capital’s Australian business, which collapsed last month with debts of A$4.9bn to companies including Credit Suisse and SoftBank.

Administrator Grant Thornton said on Thursday that creditors had voted by 23 to zero, with a handful of abstentions, to wind up the parent company of the London-based supply-chain finance group founded by Australian entrepreneur Lex Greensill. No buyers had emerged for the business, which crashed into administration on March 8, it said.

“As of today, the company is now in liquidation,” Grant Thornton said in a 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 Limited in liquidation.”

As part of the liquidation process, Grant Thornton will conduct a more detailed review of the company’s financial affairs and prepare a report on the conduct of its top executives. A creditors report published on April 15 said the findings would be conveyed to Australia’s corporate regulator Asic.

The collapse of Greensill, a SoftBank-backed company spanning the UK, Germany and Australia, has prompted investigations by market regulators in Germany and Australia. The UK parliament has also established a committee to probe lobbying conducted by former prime minister David Cameron, a paid adviser to Greensill.

Thursday’s virtual creditors’ meeting ran for slightly more than one-and-a-half hours, with 41 creditors in attendance. Representatives of Australia’s tax authorities, corporate regulator and attorney-general also attended. The Association of German Banks participated in the meeting in relation to a contingent claim of €2bn.

The claim relates to any future drawdown on the German government’s deposit insurance scheme following the collapse of Greensill Bank AG, a subsidiary in the country that was declared insolvent this week, according to a person at the meeting.

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