Greensill Capital gets OK to sell Finacity interests to White Oak

By Sarah Lizee

Olympia, Wash., Aug. 18 – Greensill Capital Inc. received court approval to sell to White Oak Global Advisors, LLC its 100% ownership interests in Finacity Corp., according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

The sale provides for some material improvements over the terms of the stalking horse bid, including cash consideration of $7 million, which will be paid directly to the debtor’s estate. The stalking horse bid, from the founder and current chief executive officer of Finacity, provided $3 million in cash.

The sale also provides for the release of all liabilities arising from the Katz claims against the debtor and the Finacity guarantors, and all other claims held by the Katz parties against the debtor, which have been asserted by the Katz parties in the amount of $21.22 million, of which $15.91 million has been asserted as administrative expense claims, as well as the release of certain parties including the Katz parties of all liabilities arising from the 2019 acquisition.

The Katz claims, if allowed, would substantially dilute the debtor’s unsecured claims pool and reduce overall creditor recoveries, according to a declaration filed by Jill Frizzley, independent director of Greensill.

The stalking horse agreement included a 2% breakup fee and an up to $100,000 expense reimbursement.

New York-based Greensill Capital is the U.S. arm of Greensill Capital Management, a financial services company. Greensill Capital filed bankruptcy on March 25 under Chapter 11 case number 21-10561.

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