UBS Group said it will give investors in Credit Suisse funds linked to the collapse of Greensill Capital a significant proportion of their money back, as the Swiss bank looks to clear through the legacy issues of its former rival.
Investors in the Credit Suisse Supply Chain Finance Funds will be offered a redemption at 90 per cent of the net asset value on Feb 25, 2021, UBS said in a statement on Monday (Jun 17). The offer commenced on Monday and runs until Jul 31.
Along with the meltdown of Archegos Capital Management, the collapse of a US$10 billion group of supply chain funds linked to Greensill Capital in 2021 was a contributing factor to the demise of Credit Suisse in 2023. UBS acquired its competitor in a government-backed rescue.
“The offer aims to give fund investors certainty, an accelerated exit from their positions and a high level of financial recovery,” UBS said in a statement. “It will allow an early exit from fund investments compared to distributions under the ongoing recovery process.”
In February last year, Credit Suisse said it had finished paying back investors in two out of four funds linked to Lex Greensill’s failed supply-chain finance firm.
UBS said that the operating unit, UBS AG, expects to make a provision of around US$900 million in connection with the offer, to be booked in the second quarter.
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“No material impact is expected on UBS AG on a standalone basis,” it said. Bloomberg
