Credit Suisse (CSGN.S) is looking to recoup the external costs it is incurring to recover money for investors in its insolvent supply chain finance funds linked to Greensill, the Swiss bank said on Thursday.
“The recovery work that (Credit Suisse Asset Management) CSAM is doing on behalf of fund investors inevitably incurs external expenses, which are being accrued. The majority of these external costs have not yet been passed on to investors,” the bank said in a note to investors. “CSAM is fronting as much of this expense as possible and will seek to recoup the amount which has been incurred when appropriate.”
The bank has said it expects to accrue around $145 million this year in recovery costs following the collapse of Credit Suisse’s $10 billion worth of supply chain finance funds in March. It has been working with advisers and external experts to help recoup the funds, some $7.0 billion of which had been recovered by end-September. read more
Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields