Credit Suisse, West Virginia governor's mining company close to settlement: report
The settlement could be signed within weeks
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The Switzerland bank Credit Suisse and West Virginia Republican Governor Jim Justice are near a settlement over the nearly $700 million his mining company Bluestone Resources owes the bank's clients.
The mining company borrowed loans from Greensill Capital, a U.K. supply chain finance firm that collapsed in March 2021.
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FILE- West Virginia Gov. Jim Justice. (Photo: Reuters) (Reuters)
After Greensill imploded last year, Credit Suisse has faced pressure to retrieve money that the supply chain company lent through a group of funds set up by the Swiss bank for 1,200 of its clients.
The deal being between Justice and Credit Suisse would include Bluestone mines increasing production and making regular payments to the Swiss bank.
The Swiss bank will also have an option on funds raised from a potential sale of the mines that would take place later on.
FILE- Credit Suisse logo. (REUTERS/Arnd WIegmann/File Photo / Reuters Photos)
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The settlement could be signed within the next few weeks, The Financial Times reported.
This comes after a proposed settlement from September was scrapped. Justice had offered to pay Credit Suisse $300 million, and that the bank receive half the proceeds of the sale of the mining business in an effort to settle the debts. The offer was reliant on Bluestone negotiating a $300 million refinancing deal from an unnamed party, and that deal never transpired.
FILE- A man enters the Credit Suisse offices in the Manhattan borough of New York City, U.S. July 5, 2016. (REUTERS/Brendan McDermid / Reuters Photos)
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The new deal is not dependent on any third-party groups.
"Credit Suisse Asset Management continues to pursue all available avenues for recovery of the funds on behalf of our investors; this remains a priority," the bank said in a statement.