Greensill Capital, the Australian company that sits atop the failed financial empire managed by former Bundaberg sugar farmer Lex Greensill, owes no less than $1.75bn to collectors and may’t pay between $2m and $3m owed to staff made redundant.
The company additionally faces a potential extra declare from German banks of about €2bn, though administrator Matt Byrne of Grant Thornton mentioned he had but to confirm the declare.
Because a lot of the Greensill group’s operations had been run from London, its Australian entity, Greensill Capital, employed solely 38 staff – 35 of whom had been made redundant on Monday.
In an announcement, Grant Thornton mentioned it could help the redundant workers in making a declare for his or her entitlements below the federal authorities’s Fair Entitlements Guarantee scheme, which makes funds when corporations collapse with out the money to satisfy their obligations to staff.
Administrators in Australia, the UK and Germany, the place Greensill owned a financial institution, at the moment are combing via the wreckage left behind by the collapse, which has thrown into doubt tens of 1000’s of jobs at companies, together with the Whyalla metal mill, that relied on the group for finance.
The company offered “supply chain finance” – loans to large corporations in order that they might pay their suppliers.
The Australian Securities and Investments Commission is analyzing the affect of Greensill’s failure on the Australian market, the regulator’s deputy chair, Karen Chester, informed parliament.
“This became an incredibly risky business model,” Chester mentioned.
She mentioned the Greensill scenario was being seemed into by a number of totally different groups at Asic.
“I think it’s fair to say that at the moment our focus is on having a complete understanding of what’s happened with Greensill, working out what impact it has in the Australian market, and what we need to do, if anything, to address any concerns that we have,” she mentioned.
Creditors of the Australian company met with Byrne on Friday morning.
Japanese enterprise capital group Softbank, which is closely backed by money from Saudi Arabia, is the company’s greatest creditor, owed greater than $1bn.
Credit Suisse, which ran funds that fed money into the Greensill machine, is owed about US$140m.
A Greensill household belief has additionally claimed to be a creditor, saying it’s owed about US$60m.
Byrne is but to determine which of the money owed collectors declare to be owed ought to be admitted.
It is known he informed collectors that the company he controls has a declare value about US$800m in opposition to the UK operation, which is in administration via the British arm of Grant Thornton.
Creditors had been additionally informed there could be a big shortfall, with not sufficient money readily available to pay staff entitlements together with redundancy payouts.
The company’s principal asset is its possession of the UK business, which was reportedly near being bought to hedge fund Apollo earlier than a catastrophic failure to resume insurance coverage on $4.6bn in lending when it expired on 1 March triggered Greensill’s sudden collapse.
However, it’s not clear how a lot, if any, worth stays within the shattered business and the way a lot of something that may be recouped would circulation again to Australian collectors.
Greeensill Capital additionally owns Earnd, a fintech that enables workers early entry to their pay, which it’s understood Byrne will try to promote.