Credit Suisse puts next 16 supply chain fund insurance claims to court

Credit Suisse Asset Management (CSAM) filed suit in Australian and UK courts to cover lingering unpaid insurance claims from the $2.2 billion it has sought from insurers on behalf of investors in failed supply chain financing funds.

Litigation concerning 15 insurance claims was launched in Australian court on February 27 against Insurance Australia, Bcc Trade Credit, Greensill Bank Ag and associated parties.

Another case demanding payment on a single unpaid claim was filed March 10 for the UK court docket.

One lingering claim is subject to a standstill agreement with the respective insurer, CSAM has noted.

Credit Suisse had first moved to pursue its claims by joining existing litigation in Australia tied to one of the same policies backing its own insurance claim. That case has been in the works for over a year and recently spawned counter-suits.

At issue are trade credit insurance policies backing underlying assets in supply chain financing securitisation funds run by Greensill Capital.

The funds had to be wound down after Tokio Marine, which inherited the credit insurance policies when it bought BCC Trade from Insurance Australia, declared irregularities in the business and cancelled coverage.

Over 90% of the $2.2 billion CSAM is demanding across its 18 insurance claims are against Insurance Australia Ltd with the remainder split between Zurich Insurance and Tokio Marine, CSAM has previously said.

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