(Bloomberg) — SoftBank Group Corp. successfully defended itself in a trial against Credit Suisse over a restructuring agreement that left investors in the Swiss lender’s funds out of pocket by as much as $440 million.
The London trial pored over a series of transactions involving the now-defunct Greensill Capital and the way the trade finance firm restructured its relationship with Katerra Inc., a US-based construction company in which SoftBank was a major investor.
Credit Suisse sued SoftBank accusing it of concocting the restructuring in 2020 so that it could pull its own money out of the firm, knowing full well that Greensill, already in free-fall, would be unable to repay what it owed to Credit Suisse.
On Wednesday, Judge Robert Miles blamed Lex Greensill for concealing what he called the “true position” around the restructuring from Credit Suisse officials.
UBS Group AG was pursuing the London claim on behalf of its former Swiss rival in a bid to recover funds for investors trapped in the supply chain finance vehicles.
SoftBank countered that the Credit Suisse case has always been an attempt to shift blame “for its own poor investment decisions.” Softbank’s lawyers argued that the $440 million funds were provided by the Vision Fund on the basis that it would be used to repay the Credit Suisse notes.
Greensill collapsed just months after the SoftBank deal when the Japanese group refused to provide a $1.5 billion last-minute bridging loan. Credit Suisse then froze and began winding down $10 billion of funds that bought products from Greensill Capital.
Greensill’s demise was one of several major scandals that knocked confidence in the Swiss lender, left clients with hundreds of millions of dollars of losses and ultimately led to its forced takeover by UBS.
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