The administrators of the defunct Greensill Bank are seeking more than $400m from Zurich Insurance in lawsuits filed in London, UK.
The lawsuits aim to recover the losses the bank incurred due to risky investments tied to Credit Suisse and Liberty Commodities, reported Bloomberg.
Administrators are urging Zurich to offset the losses, which amount to around $274m from debt acquired from a Credit Suisse subsidiary.
They are also seeking an additional $127m originating from unpaid dues by troubled commodities tycoon Sanjeev Gupta’s Liberty Commodities. These details regarding the March claims have recently been disclosed to the public.
Credit Suisse’s debt losses are being added to the amounts that Greensill sought from the insurer, due to losses linked to Liberty, the report said citing a Financial Times report.
Gupta’s steel company had reached restructuring agreements with the two lenders, agreeing to repay the debt using a combination of lump sums and scheduled instalments.
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As per the emailed statement, Liberty entered a full debt restructuring agreement with the administrators of Greensill Bank in April 2023.
Referring to insurance agreements involving Credit Suisse, Greensill stated that Zurich is required to make payment for covered losses either to Credit Suisse directly or to Greensill.
The insurer is facing lawsuits following a London case initiated by Credit Suisse in November last year. It involves the German bank and its administrator about the lost funds.