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The lead negotiator tasked with recovering billions of dollars lent by Greensill Capital has left UBS as the Swiss bank tries to settle a three-year scandal that led to the collapse of its former rival Credit Suisse. There is.
UBS has reorganized the special committee set up to deal with the fallout from the Greensill implosion, but remains $2.3 billion in debt, according to people with knowledge of internal developments.
Former Credit Suisse executive Elaj Shirvani, who was the chief asset recovery negotiator, left UBS in the summer, and the bank also cut back on its use of recovery advisers, including Swiss law firm Walder Wyss.
The Greensill scandal was one of the last major scandals in the years leading up to the collapse of Credit Suisse, which was rescued by UBS last year.
UBS quashes a series of lawsuits over Greensill losses by offering to repay up to 90% of money owed to former Credit Suisse clients whose funds were used by the failed specialist lender I’m trying.
About 95% of fund investors agree with UBS’s proposal, but some large investors continue to pursue legal claims.
Credit Suisse had persuaded 1,200 of its most important clients to invest in a group of so-called supply chain finance funds that promised attractive returns with little risk. But in March 2021, Greensill filed for bankruptcy, locking up $10 billion in funds.
Several investors have joined a class action lawsuit against Credit Suisse, while the bank is also under investigation by Swiss police over its dealings with Greensill, which included raids on its offices, bankers’ homes and hotel rooms. Ta.
Following Greensill’s collapse, Credit Suisse set up an expert group to recover assets for its clients.
Mr. Silvani is a 36-year veteran of Credit Suisse, where he was chairman of the bank’s emerging markets division, and has led businessman Sanjeev Gupta’s GFG Alliance and West Virginia Governor Jim Justice’s Bluestone Bank. He was given the responsibility of leading negotiations with the largest debtors, including the Resources Mining Group. .
Walder Wyss advised the Special Committee on negotiation and litigation matters.
But since taking control of Credit Suisse, UBS has been responsible for recovering the assets itself, according to people involved in the move. UBS has sought to reduce the amount it spends on external service providers.
UBS is currently the largest creditor of Greensill bonds, having bought more than 95% of the fund units from former Credit Suisse clients.
The bank is seeking to recover about $2.3 billion through a series of negotiations, lawsuits and insurance claims. UBS said in April that asset recovery would continue until at least 2031 and could cost $321 million, up from previously expected $291 million.
UBS declined to comment. Silvani and Walder Wyss did not respond to requests for comment.
