Interesting article is attached, on the credit lessons from the Greensill downfall.
Pull on any thread in the Greensill story and you eventually get to Sanjeev Gupta and his company, GFG Alliance. No other company has been as big a user of Greensill’s financing solutions as GFG Alliance.
“Every year I have to re-sign a personal guarantee to the German deposit protection authority for any losses they may sustain with respect to the deposits [of Greensill Bank]. It’s an annual reminder of the fact that my family home is on the line if we decide to be foolish.” Lex Greensill
A lot of us have seen this play out before with Alan Bond and Christopher Skase. It does not end well for either lenders or employees.
When empires are built on debt it is a 'house of cards' just waiting to fail.
At this point in time, it is a wait and see scenario with GFG Alliance but looks dire based on the AFR/Financial Times/Sunday Times articles over the last few days.
For Greensill it is more definitive. Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
