Greensill unsecured creditors object to Chapter 11 plan releases

By Sarah Lizee

Olympia, Wash., Oct. 21 – Greensill Capital Inc.’s official committee of unsecured creditors objected to the company’s Chapter 11 plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The committee said that it is generally supportive of the plan but does not support the “broad estate releases” contemplated for the debtors’ affiliates, Greensill Capital (UK) Ltd., and Greensill Capital Management (UK) Ltd.

“In short, the affiliate releases insulate GCUK and GCMC from potential causes of action that would otherwise inure to the benefit of unsecured creditors, while failing to provide any material consideration to the estate in return,” the committee said in its objection.

The group said the releases appear to insulate the affiliates from, among other things, even claims to turn over the debtors’ records.

“Any estate release for the U.K. administrators, GCUK or GCMC must be sufficiently clear and narrowly tailored so as to ensure that it does not otherwise interfere with the liquidation trust’s access to the debtor’s records and/or its ability to identify and pursue retained causes of action,” the committee said.

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, 2021 under Chapter 11 case number 21-10561.

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