Credit Suisse reimburses an additional $ 400 million to investors in funds linked to Greensill


ZURICH, Aug.6 (Reuters) – Credit Suisse (CSGN.S) has repaid an additional $ 400 million to investors from its supply chain finance funds linked to Greensill, the Swiss bank said on Friday.

The collapse of funds in March sparked a tumultuous period for the bank, culminating in a multibillion-dollar loss linked to investment fund Archegos, a series of executive layoffs and a looming strategic overhaul. Read more

The payout, originally announced with the bank’s second quarter results last week, is the fourth payout so far and brings the total amount returned to investors to around $ 5.9 billion.

With the cash already distributed and the cash remaining in the funds, the cash position is equivalent to around $ 6.6 billion or 66% of the assets under management of the funds at the time of their suspension, the bank added.

The lender also said Friday it was refunding money to investors in four Credit Suisse segregated funds that were invested in supply chain funds with illiquid assets.

These assets, entrenched in so-called side pockets, are now liquidated, with shareholders receiving a payment in proportion to their holdings on August 10. The amounts involved are much lower than the main payment.

In March and April, $ 4.8 billion was returned to investors from Greensill-related funds in two installments, while an additional $ 750 million was returned in July.

“The liquidation proceeds will be distributed as soon as possible until investors receive the total net liquidation proceeds raised from the funds,” Credit Suisse’s asset management arm said on Friday.

“Investors will be notified of these payments. The management fee is waived with immediate effect.”

The bank said it continued to liquidate assets as debts matured, but warned investors they could incur losses.

Reporting by John Revill Editing by Riham Alkousaa, Michael Shields, Kirsten Donovan

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