| Description |
1 online resource : illustrations |
| Series |
SAGE business cases |
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SAGE business cases
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| Summary |
The case discusses the survival challenges faced by Australia-based Greensill Group (Greensill), a supply-chain finance company founded by Lex Greensill. Greensill was the world's first investment fund and primarily provided supply-chain finance to suppliers. Greensill paid suppliers faster than normal, and corporate clients paid Greensill once the trade cycle was over. These future payments by corporate clients to Greensill were also bundled up and sold to investors through the Credit Suisse Asset Management funds. A small insurance company in Australia, the Bond & Credit Co (BCC), provided the insurance coverage of the underlying credit for the same. In August 2020, BCC was acquired by Tokio Marine Holdings, a Japanese insurance holding company which discovered that Greg Brereton, a BCC employee, overrode his authority by issuing insurance of more than USD 7.7 billion to Greensill. Tokio Marine decided not to renew Greensill's policies after March 2021. The Federal Financial Supervisory Authority (BaFin), a German regulator, at the same time also reported that Greensill's receivables were overly exposed to a British-Indian industrialist, Sanjeev Gupta, with some invoices considered fraudulent. Credit Suisse immediately froze all the asset funds associated with Greensill. Chris Laverty, Trevor O'Sullivan, and Will Stagg of Grant Thornton UK LLP, on March 8, 2021, were appointed as joint administrators of Greensill. By March 2021, they laid off Greensill's 440 staff members and were in search of a buyer for Greensill. Can the joint administrators save the fate of Greensill? If so, how? The case encourages students to evaluate the challenges of the supply-chain trade finance-based business model. It also helps students understand why founders and CEOs conduct fraud |
| Notes |
Description based on XML content |
| Subject |
Business logistics -- Finance -- Case studies
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Corporate governance -- Case studies
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Corporate governance
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| Genre/Form |
Case studies
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| Form |
Electronic book
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| Author |
Bhattacharya, Saurabh, author
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| ISBN |
9781529621419 |
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1529621410 |
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