Changes in Credit Suisse Group AG
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West Virginia Governor Jim Justice has asked to pay Credit Suisse $ 300m and give half of the proceeds of the sale of his mining business to cover the debts he paid to Greensill Capital bank connected to the network.
Bluestone Resources, a Justice coal mining empire run by Justice, has largely borrowed from Greensill, a financial company whose collapse in March has sparked speculation in the UK and tarnished Credit Suisse’s reputation.
Greensill borrowed $ 690m from Bluestone from a proceeds from Credit Suisse. Last week Bluestone wrote to Credit Suisse with a view to ending the debt, which was first reported by the Wall Street Journal.
In the letter, Bluestone said it was discussing a $ 300m rebate from an unnamed party and would donate the money to Credit Suisse, according to those familiar with the letter.
The offer also included half of the proceeds, the total loan, for future Bluestone sales, although the letter did not specify that such a sale was imminent.
A person familiar with Credit Suisse’s management opinion is thought to have considered negotiating a deal, but there were doubts as to whether the extra money could be profitable and the benefits that would remain in the business.
Credit Suisse announced Monday that an additional $ 400m will be reimbursed for 1,000 affluent customers trapped in retail operations, which recovered $ 6.3bn of the $ 10bn in cash when it was suspended in March.
Bluestone was one of three creditors to the funds – including Sanjeev Gupta’s GFG Alliance and toppled US construction company Katerra – which Credit Suisse identified as a problem. The three leaders are owed $ 2.3bn in Credit Suisse debt.
“Credit Suisse Asset Management is doing everything we can to help raise funds for our clients,” the bank said. “If all the debtors ask us, we should look after them.”
The prophet of righteousness did not respond to a request for comment at the time of writing.
Bluestone and its affiliates were one of Greensill’s largest clients before the surprise collapse, with the financial company preparing company funds linked to invoices from a coal retailer.
Greensill had an affair with Credit Suisse, which repaid the debt and sold it to investors in a number of mortgages. 1,000 investors have threatened to sue for billions, even though a Swiss bank declares the money to be for insurance and risk.
Bluestone is the first Greensill customer to take over cases. He filed a lawsuit in March in federal court in Manhattan against the company and its founder, Lex Greensill. Justice further added that its coal mining empire could fail because of the “sudden and unnecessary departure” of the financial company.
In the company’s initial complaint, Bluestone said it was unaware of the Credit Suisse loan cuts until February this year. At first he refused to return the bank.
Additional reports of Stefania Palma