Credit Suisse files lawsuits against Australia's IAG over Greensill collapse

Sydney

CREDIT Suisse Group joined creditors of Greensill Capital by filing lawsuits in Australia seeking compensation from the country's biggest insurer over the supply chain financier's collapse, court filings showed.

Local media put the total claims at A$300 million (S$296.8 million).

Insurance Australia Group (IAG) was previously named as potentially exposed to the 2021 failure of Greensill since its former unit BCC Trade Credit sold policies to Greensill, but said at the time that it had no liability because it sold its share of the unit 2 years earlier.

But lawsuits have been mounting against the Australian company, which is best known at home for selling property and car insurance.

Greensill's administrator and US private lender White Oak Global Advisors, which is working with Greensill client GFG Alliance, each filed suit against IAG in late 2021, court filings show.

Credit Suisse then filed 2 lawsuits against IAG last month, filings show.

All 4 lawsuits were joined together and had their first administrative hearing in the Federal Court on Thursday (Feb 3) , court filings showed.

The Australian Financial Review reported that the total claimed by the companies was nearly A$300 million, about half of which was by White Oak. White Oak did not respond to e-mail from Reuter's seeking comment.

Credit Suisse was not immediately available for comment.

Switzerland's second-largest bank played a pivotal role in Greensill's collapse by suspending US$10 billion of supply chain funds soon before Greensill filed for insolvency.

An IAG spokesperson said the company continued to believe it was not liable for BCC policies, that it "anticipated potential litigation by the administrators of Greensill or other claimants" and would defend the lawsuits. REUTERS