𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Credit Suisse has lost a 440 million US dollar (£325 million) High Court claim against Japan’s SoftBank Group over a restructuring agreement involving Lex Greensill’s collapsed firm.

In early 2021, Credit Suisse found itself exposed to the collapse of Greensill Capital, which had supplied loans to many customers.

These were then lumped together and sold off, via a Credit Suisse fund, to outside investors, who would buy a share in the loans and cash in when they were paid back.

These loans were insured, but the firm collapsed when its main insurer decided not to renew the insurance.

A civil trial in London looked at how Greensill restructured its relationship with Katerra, a construction company in which SoftBank was an investor.

Credit Suisse alleged that the relationship between SoftBank Group and Greensill Group “was co-ordinated at the highest levels of the two organisations”, and left Credit Suisse investors out of pocket.

SoftBank defended the claims.

On Wednesday, Lord Justice Miles dismissed Credit Suisse’s claim, finding that Softbank was not liable for the restructuring deal that left the Swiss bank out of pocket in relation to 440 million US dollars of loan notes.

Lord Justice Miles found that SoftBank “did not know or suspect” the agreements were being entered into by Greensill for the purpose of “prejudicing” Credit Suisse.

He added that SoftBank believed in “good faith” that the 440 million US dollars would be used to pay lenders.

He added: “The reality is that there was a series of negotiations and agreements over more than three months under which SoftBank had the aims of salvaging Greensill’s fundraising efforts and recapitalising Katerra.”

Lord Justice Miles added that SoftBank “did not orchestrate the transactions in order to obtain Katerra shares free of debt”.

In the 149-page ruling, he also said that SoftBank was “doubtless negotiating” to protect its own commercial interests, as was Mr Greensill on behalf of his group of companies.

Lord Justice Miles said: “I do not accept the claimants’ submission that SoftBank unilaterally imposed terms on Greensill.

“Nor do I think that SoftBank can be said to have orchestrated an improper transaction at an undervalue.”

A spokesperson for UBS, which acquired Credit Suisse in 2023, said: “We acknowledge the court’s decision in this legacy matter.

“The CS Fund is reviewing the judgment and evaluating next steps. We remain committed to taking all appropriate actions to maximise recovery for the benefit of all stakeholders.”

A spokesperson for SoftBank said: “Today’s ruling fully vindicates SoftBank and confirms the allegations were simply a baseless attempt to redirect blame.

“SoftBank acted honestly, and this judgment sets the record straight.”