Creditors voted to liquidate the Australian business of Greensill Capital, which went bankrupt last month with debts of $ 4.9 billion to companies including Credit Suisse and SoftBank.
Administrator Grant Thornton said Thursday that creditors voted 23 to 0, with a handful of abstentions, to liquidate the parent company of a London-based supply chain financial group founded by Australian entrepreneur Lex Greensill. No buyers for the job appeared, who broke into the administration on March 8, it is stated.
“As of today, the company is in liquidation,” Grant Thornton said in a statement.
“The liquidators will continue to identify and realize available assets, monitor developments regarding the management of Greensill UK and Greensill Bank AG, and continue investigations into 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 released on April 15 states that the findings will be passed on to Australian corporate regulator Asic.
The collapse of Greensill, a SoftBank-backed company that spans the UK, Germany and Australia, has spurred investigations by market regulators in Germany and Australia. The UK Parliament has also set up a lobbying inquiry committee chaired by former Prime Minister David Cameron, a paid adviser to Greensill.
The virtual meeting of creditors on Thursday lasted just over an hour and a half, and was attended by 41 creditors. Representatives of the Australian tax authorities, the corporate regulator and the public prosecutor were also present. The Association of German Banks participated in a meeting regarding a potential claim of 2 billion euros.
The request applies to any future withdrawal of 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 from the meeting.