The collapse of controversial financier Greensill Capital has led to the closure of its local office in Australia with the loss of at least 35 jobs this week, and many more expected to follow in the UK where its main operations reside.
“We can confirm that 35 redundancies were made in Australia with a small number of employees retained to assist the administrators,” said the Australian administrators led by Matt Byrnes, Phil Campbell-Wilson and Michael McCann of Grant Thornton.
The office closure was flagged in a release on Tuesday by Greensill’s Australian boss Matthew Costello via a Linkedin post on Tuesday.
“I’ve made some fantastic friends here at Greensill and I am deeply saddened that we now have to disband and go our seperate (sic) ways,” said Mr Costello.
“We finish at Greensill and the Australian team consisted of 35 exceptional people which peaked at managing over $5b (billion) in assets for clients and investors. I couldn’t be prouder of what we achieved and whilst Greensill will be in the news for some time to come, the Australian business and the Australian team built one of the strongest working capital finance books in the local finance industry.”
Greensill Capital filed for insolvency in the United Kingdom last week after losing insurance coverage for its debt re-packaging business and private equity group Apollo walked away from talks to buy parts of the business.
Partners from Grant Thornton have been appointed as administrators of the UK-based business. This is separate from the Grant Thornton team that has been appointed as voluntary administrators of the Australian holding company.
“Greensill Capital Pty Ltd is the parent company for the Greensill Group, and provides administration and head office support to the Group but operates only in a limited capacity,” said the Australian administrators in a statement on the Greensill website.
Lex Greensill came up with the idea of supply chain finance working on his parents’ Bundaberg farm and seeing how long they had to wait to be paid for crops.