ASIC has eyes on Greensill
THE Australian corporate regulator is circling collapsed global financier, Greensill Capital, following revelations the company sought restructuring advice – including on a potential insolvency – within weeks of spruiking a $US600m ($771m) capital raising ahead of a much-hyped IPO.
Grant Thornton, appointed Greensill’s administrator this week, was initially called in to provide restructuring advice in late December. It was not involved in the $US600m capital raising, which was quickly abandoned.
Credit Suisse, Citibank and law firm Allen and Overy were advising Greensill on the raising, a teaser for a potential ASX listing, that would have valued Greensill at $US7bn.
Questions are swirling over whether the capital raising was a form of rescue package rather than a fund injection to pay for the next stage of Greensill’s growth.
An ASIC spokesman said the regulator was monitoring Greensill while Grant Thornton fully assessed the situation.
Grant Thornton’s British and Australian arms are running two separate administrations over Greensill’s insolvent local and British operations with its first creditors meeting scheduled for next Friday.
“ASIC does not become directly involved while the external administrators Grant Thornton are carrying out their role, though obviously we are watching closely as it develops and the process continues,” an ASIC spokesman said.
London-based Greensill Capital was founded a decade ago by Lex Greensill, the son of a Bundaberg farmer.
Sanjeev Gupta’s GFG Alliance, owner of the Whyalla steelworks, is one of the most exposed to Greensill’s collapse, reported to owe the financier at least $US5bn.