The remnants of Greensill Capital, the U.K. financing company that collapsed earlier this year, filed for bankruptcy in the U.S., aiming to halt litigation filed by one of its biggest clients, a coal-mining company owned by the governor of West Virginia, WSJ Pro Bankruptcy reported. Greensill’s U.S. bankruptcy filing on Wednesday seeks to halt a lawsuit brought earlier this year by coal supplier Bluestone Resources Inc. and its owners, West Virginia Gov. Jim Justice and his family, according to court papers filed in the U.S. Bankruptcy Court in New York. Read more.
In related news, Greensill Capital’s bankrupt U.S. unit won court approval to sell its Finacity Corp. business to White Oak Global Advisors for $7 million after reaching a deal with unsecured creditors, Bloomberg News reported. The transaction includes an agreement with Finacity founder Adrian Katz, who dropped demands for $21.2 million in payments related to Greensill’s purchase of Finacity in 2019. In return, the bankrupt U.S. unit will not try to sue Katz or certain other insiders for their role in the deal. Greensill is shedding Finacity to raise money for creditors just two years after acquiring the business. Greensill’s U.S. unit filed for bankruptcy in New York in March following the collapse of its parent in the U.K. The U.S. unit had acquired Finacity from Katz, who continued to lead the business after its purchase. Finacity helps companies turn their invoices into structured financing. Read more.
