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Greensill Creditors OK Australian Liquidation; Further inquiries are awaited

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Creditors of Greensill Capital Pty, the Australian parent company of the collapsed UK supply chain financier, voted on Thursday to liquidate the company, its director said, triggering further inquiries into the conduct of its directors.

Grant Thornton (GT), the appointed liquidator for the Australian parent company and its operating companies in Britain, said the majority of the 26 creditors owed AU $ 4.6 billion ($ 3.6 billion) per the collapsed financier who voted for liquidation.

“The liquidators will continue to identify and realize available assets, monitor developments in relation to the administrations of Greensill UK and Greensill Bank AG, and continue their investigations into Greensill Capital Pty,” GT said in a statement.

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The creditors vote comes as prosecutors in the German city of Bremen raided the offices and homes of bankers in Greensill, including the residences of five officials suspected of wrongdoing.

In March, German regulator BaFin filed a criminal complaint with prosecutors over an audit that found Greensill Bank, a stand-alone entity owned by the Australian parent company, could not provide evidence of claims on its balance sheet.

The German lender collapsed a few days later.

As part of the liquidation of the Australian parent company, new investigations will be prepared into the conduct of Greensill’s agents and their findings will be communicated to the Australian regulator of businesses, GT told creditors in an April 15 report.

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Founder and CEO Lex Greensill, a director since 2011, was appointed company secretary in February, the report adds.

Greensill did not immediately respond to a LinkedIn post asking for comment.

Seven other directors, including his brother Peter Greensill, who is also a secured creditor, stepped down in the month before the directors were appointed as the company began to consider contingency planning, he added. .

However, Reuters was unable to immediately trace the contact details of these directors.

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Other secured creditors include Credit Suisse and BOQ Finance, while unsecured creditors include Softbank, sellers of companies Greensill bought in 2020, employees and commercial creditors, according to the report.

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The Association of German Banks also placed a contingent liability of 2 billion euros ($ 2.41 billion) on the Australian parent company which could be payable if the available insurance and bank assets prove insufficient for the ‘compensate for deposit protection payments.

The association has already paid around 2.7 billion euros to more than 20,500 Greensill Bank customers under a deposit guarantee scheme after the collapse.

($ 1 = 0.8313 euros) ($ 1 = 1.2922 Australian dollars) (Reporting by Paulina Duran in Sydney; Editing by Clarence Fernandez)

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