© Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich
ZURICH (Reuters) – Credit Suisse (SIX:) plans to return more cash to investors in supply chain finance funds linked to stricken Greensill in early to mid-April, the Swiss bank said.
Switzerland’s second-largest bank last month closed around $10 billion of supply-chain finance funds that bought notes from Greensill. Of this, $3.1 billion has been repaid and $1.5 billion in cash was in the funds as of March 29, leaving more than $5 billion outstanding.
“Over time, we expect the majority part of the funds’ investments to be recovered in the liquidation process, and we have recourse to other measures should they be necessary, including possible legal action.
“We continue to explore other options for expediting the return of cash to investors,” it said in a notice to investors https://www.credit-suisse.com/uk/en/asset-management/funds/notice-to-investors.html dated March 31 and posted on its website.
The bank had also suspended four other Credit Suisse Asset Management (CSAM) funds that had invested in the supply chain finance funds.
To reopen these funds for valuation, subscriptions and redemptions, the illiquid part of the funds’ assets will be separated and “side pockets” will be created, it said.
For this illiquid part, clients will receive a separate share class. The side pocket share classes will be subsequently liquidated and paid out in cash.
“Subscriptions and redemptions of the original share classes reflecting the liquid part of the funds’ assets will resume as of April 7, 2021,” it said.
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