Business

The Credit Suisse Fund accuses SoftBank of investing over $ 440 million




A Credit Suisse Group AG

CS 1.68%

fund accused SoftBank Group Corp.

9984 -0.59%

in U.S. legal documents on orchestral transactions that made a $ 440 million investment worthless that the fund had made to fund a SoftBank-backed company.

The filing, which was filed Thursday in a U.S. district court in California, asks a federal judge to allow the Credit Suisse Fund to serve a lawsuit on a U.S. portion of SoftBank. The filing, which states that the fund is preparing to sue SoftBank in the UK, deepens the dispute over the loss of Greensill Capital, a finance company in the supply chain that fell into insolvency earlier this year.

Greensill provided loans to companies that acted as advances on expected payments from these companies̵[ads1]7; customers; Greensill wrapped the loans in securities, which investment funds run by Credit Suisse bought.

One such company was Katerra Inc., a US construction startup. The Credit Suisse Fund had $ 440 million in banknotes backed by Greensill’s lending to Katerra, and when Katerra ran into financial trouble last year, Greensill forgave the loan.

SoftBank was an investor in both Greensill and Katerra, and in the US court that filed the Credit Suisse fund, SoftBank said “orchestrated an agreement” that cut the fund out of any income without telling the fund.

A SoftBank spokeswoman declined to comment, as did a spokeswoman for Credit Suisse.

SoftBank put money into Greensill at the end of 2020, and Credit Suisse executives expected that money would go to their funds to make money on the Katerra loan – instead it ended up in Greensill’s German banking unit, The Wall Street Journal reported in April.

In June, the Journal reported that Credit Suisse had dissolved a personal banking relationship with SoftBank founder Masayoshi Son and cracked down on transactions with the company.

The court archive that was made Thursday is known as a section 1782 petition, where a party can ask a US court to order the collection of evidence for a case outside the United States. The Credit Suisse Fund claims that it has taken enough steps to sue SoftBank in the UK to justify the lawsuit, which is seeking a number of documents.

Write to Charles Forelle at charles.forelle@wsj.com

Copyright © 2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Back to top button