Credit Suisse's Legal Tussle With Metals Tycoon Delayed
The Swiss bank's legal wrangle with a business tycoon affected by the downfall of Greensill Capital has been delayed, a report said.
Credit Suisse’s London legal battle with Sanjeev Gupta has been delayed by another six months, as the metals tycoon continues to seek funding for his empire. The reprieve gives Gupta more time to try and save his corporate empire after his biggest lender Greensill Capital collapsed into insolvency earlier this year.
Gupta and GFG have been searching for new financing while simultaneously trying to persuade his existing lenders to hold off.
The implosion of Greensill, a supply-chain finance business, hit funds run by Credit Suisse, compounding the heavy losses that the Swiss bank sustained from the failure of New York-based hedge fund/family office Archegos.
An initial hearing over the bank’s attempt to push some of Gupta’s companies into insolvency has been rescheduled to March by consent between the parties, a court official said by email, Bloomberg reported. Earlier this year, through Citibank, the Swiss lender filed “winding-up petitions” against a number of companies in Gupta’s GFG Alliance Group, including Liberty Commodities Ltd.