Zurich claims Greensill-Liberty financing was long-term lending, not receivables

Zurich claims Greensill-Liberty financing was long-term lending, not receivables

Zurich Insurance has alleged that a receivables purchase agreement between Greensill and Liberty Commodities was “a sham”, citing claims by Sanjeev Gupta that financing was actually arranged verbally as a three-year facility.  The insurer makes the allegations in a counterclaim filed against Greensill’s German banking entity in the London High Court last month. The case ...

The post Zurich claims Greensill-Liberty financing was long-term lending, not receivables appeared first on Global Trade Review (GTR).Zurich Insurance has alleged that a receivables purchase agreement between Greensill and Liberty Commodities was “a sham”, citing claims by Sanjeev Gupta that financing was actually arranged verbally as a three-year facility. 

The insurer makes the allegations in a counterclaim filed against Greensill’s German banking entity in the London High Court last month. The case is one of many to have arisen out of Greensill’s collapse in March 2021. 

Greensill Bank AG initially sued Zurich in August last year, after Liberty trading houses in London, Dubai and Singapore failed to make payments due under a receivables purchase agreement. 

The financier submitted a claim to Zurich in March 2022, saying a Credit Suisse fund that invested in Greensill-issued notes was due more than US$274mn in reimbursement from the insurer. 

However, Zurich has refused