Credit Suisse Bankers Said Greensill Worth $30 Billion: Guardian
(Bloomberg) -- Bankers at Credit Suisse Group AG believed that Greensill Capital, the collapsed finance firm now at the center of multiple investigations, was a “once in a generation” company that could be worth $30 billion, according to the Guardian.
The bankers said that Greensill was going to enjoy “exponential growth” over the next three years, according to the Guardian, which cited a January 2020 presentation made to the company’s board. Such a valuation could have triggered a “nine-figure” windfall for David Cameron, the former U.K. prime minister who was working as an adviser to the supply-chain finance company, according to the report.
Greensill unraveled rapidly in March, just over a year after the board presentation, triggering probes in several jurisdictions and embroiling Cameron in a bruising scandal over his efforts to lobby U.K. officials on the firm’s behalf. The company’s U.K. subsidiaries are now in a form of bankruptcy overseen by Grant Thornton. Credit Suisse, meanwhile, is now under intense scrutiny because of its work for the company, just one of a series of risk failings that have bedeviled the Swiss bank and forced a series of executive departures in recent weeks.
James Doran, a spokesman for Greensill, declined to comment. Will Bowen, a spokesman for Credit Suisse, also declined to comment.
One of Cameron’s allies, who asked not to be identified, said the figures were “all in the realms of fantasy,” pointing out that Greensill tried to raise funds at a fraction of that value and ultimately failed.
Various media reports have stated that the former U.K. leader stood to gain millions of pounds through share options in Greensill. In an April 11 statement, Cameron said that “their value was nowhere near the amount speculated in the press.”
The collapse of Greensill has also threatened the empire of Sanjeev Gupta, the mogul who was one of the firm’s biggest clients. Much of his GFG Alliance business, which spans steel, aluminum and renewable energy, was built at a breakneck pace that saw him spend billions of dollars on unloved metal assets. Greensill’s implosion leaves him in search of new funding.
According to a story in the U.K. Telegraph, Gupta asked for public funds to be invested in a complex scheme that might help prop up his companies as part of a 170 million-pound ($235 million) bailout. The businessman requested that officials use taxpayers’ money to buy scrap metal that his plants could then recycle and convert into finished products, the paper reported, citing a letter sent to Business Minister Kwasi Kwarteng on March 24. Officials rejected the appeal.
Andrew Mitchell, a spokesman for GFG Alliance, declined to comment.
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