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Swiss bank Credit Suisse launches legal action against SoftBank

Credit Suisse has launched legal action against SoftBank in an effort to recoup hundreds of millions of dollars it claims it is owed by the Japanese investor.

Credit Suisse launches legal action against SoftBank

Credit Suisse has launched a lawsuit against SoftBank in an effort to recover hundreds of millions of dollars, which it says is owed by the Japanese investor, marking a further deterioration in a relationship that has become increasingly bad following the collapse of Greensill Capital.

The lawsuit concerns $ 440 million in funds owed to wealthy customers of the Swiss bank by Katerra, a U.S. construction company. Katerra, which was funded by SoftBank’s Vision Fund and was a client of Greensill, filed for bankruptcy in June this year with more than $ 1bn in liabilities.

The company blamed its collapse in part “on the unexpected bankruptcy filing of the former Katerra lender.” Greensill lent the company $ 440 million, packaged the debt and sold it to Credit Suisse as part of a dedicated suite of supply chain financing funds – bundled invoices that Greensill marketed as investments to little risk.

Those funds were finally raised to more than $ 10 billion before being suspended by Credit Suisse in March this year.

In late 2020, SoftBank agreed to an emergency money injection into Greensill, which was intended to cover debts in Katerra. With the Financial Times revealed earlier this year that the money never came to Credit Suisse funds.

The Swiss bank is now seeking to establish what SoftBank executives, including chairman and CEO Masayoshi Son, learned of the deal by submitting documents through U.S. courts.

On Thursday, Credit Suisse filed a 1782 settlement in the United States, which allowed documents and communications exchanged between SoftBank and Katerra to be obtained.

Lawyers suing Credit Suisse say SoftBank has mastered Katerra’s financial restructuring by the end of 2020, during which Greensill agreed to cancel its $ 440 million debt in exchange for a stake in Katerra. .

“In other words, SoftBank has orchestrated an agreement in which Greensill intends to waive its rights to the $ 440 million outstanding… Even if it was [Credit Suisse] which, in the end, was lost by virtue of that affair. However, no one reported it [Credit Suisse] that this series of events was happening, “according to the file.

“No SoftBank entity was a formal part of the [deal]”But there is no doubt that SoftBank was aware of that,” he said.

Ultimately, Credit Suisse is anticipating launching a case against SoftBank in the UK and has partnered with lawyers to put the case together, according to someone familiar with the process.

Credit Suisse declined to comment. SoftBank did not immediately respond to a request for comment.

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