United Kingdom – A bankruptcy trustee awaits a lengthy proceeding for Greensel

Greensel Bank in Bremen Photo: AFP

Bremer Greensel’s creditors have to prepare for lengthy bankruptcy proceedings. “Complex bankruptcy procedures usually take several years,” said Michael Freij, insolvency manager from Wirtschaftswoche.

Bremer Greensel’s creditors have to prepare for lengthy bankruptcy proceedings. “Complex bankruptcy procedures usually take several years,” said Michael Frigg, bankruptcy director of Wirtschaftswoche. The magazine also reported on Wednesday. “I expect this process to take between five and ten years,” Freij added. Initially, the focus is on securing assets and data, in addition to liaising with everyone involved.

According to Wirtschaftswoche, Frege wants to speak to the bank’s board and staff on Wednesday and send the first circulars to the affected creditors. Talks are also planned with members of the Creditors’ Committee. “Moreover, we will take all necessary measures to secure the company’s assets at home and abroad as soon as possible,” Freij declared.

Part of his duties as insolvency officer, Freij told the magazine, is “to clarify, secure, and, if necessary, enforce the business, legal, and property relationships of the company.” “In this regard, checks are always carried out in all directions, and directors, supervisory boards and outside service providers are verified to have violated any obligations.” This is “imperative for insolvency management functions”. Frege is one of the most well-known insolvency managers in Germany specializing in bank insolvency procedures.

The Bremen district court opened the bankruptcy proceedings of troubled Greensel bank on Tuesday at the request of the German financial regulator Baffin. The British Australian finance company Greensill Capital has previously slipped into bankruptcy. In recent years, the company has raised billions of dollars from savers through its Bremen banking branch at relatively high interest rates, as the business has been insured in supply chain finance.

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The bank was closed by Bafin on March 3 for customer transactions. Deposits are insured from private clients up to € 100,000 – but the situation is different for many German municipalities that have also invested there and whose deposits have not been secured.

The portal tagesgeldvergleich.net, which recommends the same regulations, publishes a regularly updated list of affected municipalities. There, in addition to the state of Thuringia, 31 municipalities were included on Wednesday, which collectively invested about 331 million euros in Grinsel. The North Rhine-Westphalia municipality invested 38 million euros there, Eschborn in Hesse 35 million euros and Wiesbaden 20 million euros.

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