Credit Suisse has filed a lawsuit against SoftBank demanding a refund of millions of dollars in damages allegedly made by an investor in Japan, indicating a damaged relationship that has grown significantly since the collapse of Greensill Capital.
The lawsuit relates to a $ 440m debt owed to wealthy Swiss bank customers by Katerra, a US construction company. Katerra, sponsored by SoftBank’s Vision Fund and a Greensill client, issued for bankruptcy in June this year with more than $ 1bn in debt.
The company also said the collapse was part of a “unexpected reservation for former Katerra lenders”. Greensill lent $ 440m to the company, and put the loan on sale at Credit Suisse as part of its proceeds from the sale – they collected invoices that Greensill sold as a low-risk investment.
The price rose to $ 10bn in growth before being suspended by Credit Suisse in March this year.
Toward the end of 2020, SoftBank approved an emergency cash injection at Greensill, which was supposed to repay the loan to Katerra. Koma Financial Times was revealed earlier this year that the funds did not reach Credit Suisse funds.
The Swiss Bank now seeks to establish what SoftBank executives, including chairman and CEO of Masayoshi Son, have learned of the agreement by sending US court documents.
On Thursday, Credit Suisse filed a 1782 clause in the US, which would allow access to exchange documents and messages exchanged between SoftBank and Katerra.
In the files, lawyers working for Credit Suisse say SoftBank planned a financial restructuring at Katerra in late 2020, when Greensill agreed to cancel a $ 440m loan in exchange for Katerra’s share.
“In other words, SoftBank formed an agreement in which Greensill decided to relinquish its remaining $ 440m. [Credit Suisse] who in the end failed to lose as a result of the contract. However, no one knew [Credit Suisse] that a series of events were taking place, ”according to the reservation.
“No SoftBank was a legitimate party [deal], but there can be no doubt that SoftBank was aware of this, “it said.
Finally, Credit Suisse hopes to file a lawsuit against SoftBank in the UK and has hired judges to rectify the matter, according to a source familiar with the process.
Credit Suisse declined to comment. SoftBank did not immediately respond to a request for comment.
Additional reports by Owen Walker and Sujeet Indap