Germans take over Greensill Australia

ADMINISTRATORS appointed to the Greensill Bank in Germany will take control of Lex Greensill’s Australian operations, as they probe his collapsed financial empire.

The German administrators have been recognised by Australia’s Federal Court, granting them the power to take control of the Australian operations.

Greensill Bank’s administrator, Michael Frege, asked the Federal Court to recognise German insolvency proceedings that began on March 16, and to rule that German administrators could take control of the bank’s assets in Australia and seize information, using the same powers Australian liquidators would be given.

Federal Court judge Paul Anastasiou ruled in favour of the administrators, noting he was satisfied there was a “proper basis” to permit the action. He granted the power to administrators to examine witnesses, take evidence, or require the delivery of information regarding the operation of Greensill.

However he restricted that power to directors of Greensill “without there first being an application in the usual way to a registrar for the public examination of a person”.

But Justice Anastasiou noted it was “unlikely that any profit was generated in Australia” through Greensill’s operations here.

Thursday’s application was observed by representatives of BBC Property Limited and Tokyo Marine management.

The court battle comes as creditors seek cash from the collapsed financial empire of Lex Greensill (pictured).

The administrators struck the Australian assets after German regulators ordered Greensill Bank be placed into administration.

Creditors voted on April 23 to liquidate Greensill’s Australian business after it was unable to find a buyer.

This came after Greensill filed for insolvency in March.