Credit Suisse begins High Court claim against SoftBank in $440m dispute
Credit Suisse is ramping up its legal fight against Japanese investment giant SoftBank as it looks to recoup losses linked to the collapse of supply chain finance firm Greensill Capital.
Credit Suisse has applied to the English High Court to initiate formal legal proceedings against SoftBank over a $440m dispute, Morning Wire understands.
The embattled Swiss lender, which has faced a string of crises in the past year, is looking to recover funds that Greensill had lent to a now-defunct finance firm Katerra, which was backed by SoftBank.
The implosion of Greensill sparked the collapse of some $10bn in Credit Suisse funds linked to the firm, which Credit Suisse has been looking to claw back since.
The bank last year filed a petition the US as it looked to gather information it said would support a lawsuit it planned to launch in the UK. The bank is reportedly looking to establish whether SoftBank chiefs were aware of Koterra’s plans to restructure.
SoftBank did not respond to City A.M.’s request for comment but said in a statement to the Financial Times that Credit Suisse’s step was a “required procedural step in order to prolong its desperate attempt to blame SoftBank for its own poor investment decisions.”
“We strongly reject any misguided suggestion that any SoftBank entity ever intended to, or did in fact, harm the interests of Credit Suisse or its funds and we will vigorously defend any claim relating to this matter should a claim actually be brought,” SoftBank said.
Credit Suisse has been rocked by a string of crises in the past two year after the implosion of U.S. investment firm Archegos Capital led to a $5.5bn hit before it was forced to shutter funds linked to Greensill.
Chief executive Thomas Gottstein stepped down from the firm at the end of July after three straight quarters of losses, with Ulrich Koerner taking over the reins.
Koerner had originally been brought into the firm to replace Eric Varvel as head of asset-mangement, who was ousted from Credit Suisse after the Greensill scandal.
Credit Suisse declined to comment. The Financial Times first reported the news.