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Update Credit Suisse Supply Chain Finance Funds

April 13, 2021

We are mindful of the uncertainty that the wind-down of the Supply Chain Finance Funds is causing for clients invested in the funds. Making further distributions to investors as soon as possible remains Credit Suisse Asset Management’s top priority. Since the SCFFs were suspended on March 1, 2021, a dedicated, senior Credit Suisse Asset Management SCFF task force has been working relentlessly to ensure the overall process is carried out in the most efficient manner and with investors’ best interest in mind. 

Credit Suisse Asset Management is working closely with the Joint Administrators of Greensill Capital (UK) Ltd., Grant Thornton, to minimize disruption to cash flow. Grant Thornton has retained key members of Greensill Capital’s insurance team who are available to notify the insurers and make insurance claims as they become due.

As at April 9, 2021 Credit Suisse Asset Management has collected USD 2.0 billion from receivables redeemed since March 1, 2021. This results in cash and cash equivalent levels currently in the SCFFs amounting to USD 2.3 billion. The total cash position, including the USD 3.1 billion that has already been distributed to investors, thus amounts to USD 5.4 billion, or more than half of the total AuM of the four funds at the time of their suspension. We are therefore able to announce a second cash distribution to investors, amounting to USD 1.7 billion, commencing today. This takes the total distribution so far to USD 4.8 billion.

USD 1.7 billion will be paid out to investors as the second instalment of proceeds from the liquidation of the SCFFs with the value date April 15, 2021.

Fund

Amount to be distributed

Announcement date

Credit Suisse (Lux) Supply Chain Finance Fund1

approx. USD 1,381 million

April 13, 2021

Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund

approx. USD 161 million

April 13, 2021

Credit Suisse Supply Chain Finance Investment Grade

approx. USD 65-85 million

April 14, 2021

 

Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade Fund

approx. USD 58 million

April 13, 2021

 

Liquidation proceeds will be paid out to investors as soon as feasible in one or more instalments until the investors receive the funds’ total collected net liquidation proceeds. Investors will receive notification of such payments.

Several SCFF programs with an aggregated amount of USD 2.3 billion are essentially related to the following three groups of companies: “GFG Alliance”, Katerra, and Bluestone. Notes issued by these programs are in particular held by the Credit Suisse (Lux) Supply Chain Finance Fund and the Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund. 

The aggregate notional exposures of the two SCFFs (including sponsored multi-obligor programs) to these groups are the following:

  • “GFG Alliance”:   USD 1.2 billion
  • Bluestone:           USD 690 million
  • Katerra:                USD 440 million

Notional exposure to these by fund:

Fund

Notional value after cash distribution in March 2021²

Notional value after cash distribution in April 2021²

Aggregate exposure to “GFG Alliance”, Bluestone, Katerra

Credit Suisse (Lux) Supply Chain Finance Fund

USD 4.9 billion

USD 3.5 billion

USD 1.8 billion

Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund

USD 1.6 billion

USD 1.4 billion

USD 0.5 billion

Credit Suisse Supply Chain Finance Investment Grade

USD 0.19 billion

USD 0.10-0.12 billion

n/a

Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade Fund

USD 0.14 billion

USD 0.08 billion

n/a

 

Credit Suisse Asset Management continues to work on identifying and progressing options to secure recovery. Credit Suisse Asset Management is in active dialogue with the Joint Administrators of Greensill Capital (UK) Ltd., Grant Thornton, and, where appropriate, is engaging directly with potentially delinquent obligors and other creditors. Claims will also be made under relevant insurance policies where there is evidence of non-payment or default. It is important to note that in many of these cases of non-payment or default, the obligors are firms with tangible assets. The current assessment is that there is potential for recovery in these cases although clearly there is a considerable degree of uncertainty as to the amounts that ultimately will be distributed to investors in respect of the funds. We will continue to report on the progress we are making with these situations as appropriate.

Credit Suisse Asset Management will consider appropriate legal action to protect fund investors’ interests. Credit Suisse Asset Management continues to work through the issues involved in order to return cash and provide clarity. Given there is still considerable uncertainty in some areas, we are inevitably limited in what we can say definitively at this time. However, we are committed to providing as much transparency and clarity as appropriate.

We intend to provide a further update on the progress made by the end of April 2021.

 

Further information

SCFF Portfolio details                                         EN

Updated Q&A                                                      EN

Media Release                                                     EN  DE

 

¹ Credit Suisse (Lux) Supply Chain Finance Fund is a sub-fund of Credit Suisse Virtuoso SICAV-SIF

² The Notional Value does not reflect any review of the actual NAV of the underlying assets. The actual NAV calculation has been suspended. Rounded numbers and pro-forma for notional value after cash distribution in April 2021.