Greensill administrators probe monetary transactions with founder's brother

Greensill administrators probe monetary transactions with founder's brother | Insurance Business

Greensill administrators probe monetary transactions with founder

Greensill Capital’s (Greensill) administrators are investigating monetary transactions linked to the brother of founder Lex Greensill, totalling $174 million.

According to a report released before a creditor meeting scheduled for April 22, administrator Grant Thornton said they want to clarify payments to the founder’s brother, Peter Greensill, identified as “payment of proceeds PG Family Trust.” The transactions were recorded between October and December 2019 in a liability account labelled “Repayable within a Year.”

“Management has indicated that these transactions in part relate to the sale of shares by Peter Greensill. However, at this stage, we are not in possession of sufficient documentation to confirm,” the administrators said, as reported by Bloomberg. “We have made additional inquiries of the directors and management in relation to this account.”

The report also showed that the administrators, who took charge of Greensill last month after the lender failed to extend its insurance on some of the loans it sourced and packaged, cannot find payment records for transferring the ownership of Greensill’s family farming company to Peter in April 2020.

The administrators are now trying to recover cash for creditors, including employees, the Greensill family trust, Credit Suisse Group AG, and Softbank Group Corp. They also recommended creditors wind up the company at a meeting next month.