BCC alleged that it was the victim of fraud and was “coaxed” into entering into insurance deals by Greensill Capital UK and Germany-based Greensill Bank.
IAG wrote to the liquidators of Greensill Capital’s parent company in Bundaberg, Grant Thornton, on April 5, asking that the company be bound by the court’s findings, but received no response, Mr Finch said.
‘It will be long’
Greensill Capital Pty Ltd is named on the insurance policies but has not been officially added as a party to the legal proceedings to date.
IAG was considering joining the parent class in the litigation anyway, but was unsure when to do so, Mr. Finch said. “This case is going to be long and hard fought.”
Michael Jones, SC, counsel for the Credit Suisse funds which have also filed claims against IAG, said other parties should be added to the litigation as soon as possible so the lawyers can delve into the “knot” of the dispute. business before the end of the year.
Questions have surrounded the construction and validity of insurance policies.
Judge Jagot decided she would hear about any applications to join parties at another hearing in August.
The dispute surrounds the supply chain finance business of Bundaberg-born Lex Greensill, a former rich list billionaire.
Greensill Group entities packaged the billing “receivables” and sold them to Credit Suisse, which then sold them to investors.
Insurance was a key factor for investors to be satisfied that they were protected if things went wrong. Following the collapse of the Greensill entities early last year, disputes arose over the validity of the policies.
IAG has repeatedly told the market that it has no net insurance exposure to defaults from Greensill entities.
Separately, private equity group American Industrial Partners announced on Tuesday that it has taken control of Aluminum Duffel, a Belgian aluminum plant previously owned by Sanjeev Gupta’s GFG Alliance.
The Belgian group has been in administration since July 2021 and GFG has not been able to refinance the debt due on the plant.
Mr Gupta has fought to retain control of his European assets after losing access to cheap funding previously provided by Greensill Capital and Greensill Bank. His company owes hundreds of millions of dollars to Greensill entities and over $1 billion to Credit Suisse.
Mr Gupta bought time to refinance some assets after his Liberty Steel group reached a standstill agreement with Greensill Bank which runs until October 31.
InfraBuild, headquartered in Sydney, is the most successful company in the global GFG empire and is isolated from the wider GFG business with its own funding arrangements.
But credit rating agencies say there are still risks of contagion as Mr Gupta tries to complete a $6 billion refinancing of his global operations.