FL-2022-000014 - [2025] EWHC 2631 (Ch)

The $440 million paid pursuant to the $440m CLN with GCPL was paid into GCUK’s general account on or around 10 November 2020.

GCPL did not use the $440 million to repurchase or redeem the Fairymead Notes. On 18 November 2020 Ms Sally Singer (Distribution team, Greensill Group Middle Office) sent an email to Mr Jesensky which stated:

“we [Greensill] have cash from SB to repurchase Katerra, that cash is being used for other stuff, we will get another instalment from somewhere else, but that is paying off CS loan and other stuff”.

On 27 November 2020 Mr Rob Sumara (Finance Partner, Greensill Group) sent an email to Mr Steve McElroy (Finance Team, Greensill Group) which stated: “seem to have gone through all the $440m intended for Katerra having only paid $70m toward it”.

A&O (counsel to the Greensill Group) gave a later summary of the use of the $440m in an email in April 2021 as follows:

“$250m was paid to GB to hold against collateral against re GFG positions. The balance was used in a combination of (i) transient "asset purchase liquidity" e.g. $70m was used on 25 Nov 20 to purchase assets on GCUK's B/S until 16 Dec 20 when the money was returned via sales and maturities of the assets, and (ii) "operational liquidity" for GCUK to fund monthly opex $35 million pcm) until administration on 12 Mar 21.”