Securities Arbitration Lawyers BlogDid You Lose Money In Credit Suisse (Lux) Supply Chain Finance Fund?
Supply chain financing is a vital factor keeping the flow of goods and services moving worldwide. Credit Suisse offered its investment clientele a variety of investments, including supply chain financing funds, or SCFF.
The basis of this investment is the early payment of invoices to suppliers for a fee. This innovative financing solution reduces the risk of supply chain disruption and enables suppliers and their buyers to optimize working capital. Suppliers are paid faster and have immediate access to their accounts receivable, and buyers gain additional time to pay their invoices. This technology-based solution offers short-term credit solutions that make the process easier, faster, and more efficient.
Greensill Capital
One company engaged in supply chain financing, Greensill Capital, passed its debt load to investor funds. Credit Suisse was one of the banks that backed Greensill until it lost its insurance backing that covered debt issued against its loans to companies in March of 2021.
In its marketing materials, Credit Suisse told its investors that these high-yield notes were low risk because the underlying credit exposure was fully insured. But when Greensill Capital ran into trouble and lost that insurance coverage, Credit Suisse had to freeze $10 billion in supply chain finance funds linked to the company.
Since then, Credit Suisse has been trying to recover more than $10 billion in investor funds from Greensill, with some success.
Liquidation Of the Credit Suisse Supply Chain Finance Fund
On March 1, 2021, the boards from all four of the Credit Suisse Supply Chain Financing Funds suspended subscriptions and redemptions of the funds. The liquidation process will pay all investors equally. Investors will receive payments proportionate to their original investments. There will be no “preferential payments” in the liquidation.
On June 7, 2023, Credit Suisse made a seventh distribution to investors that totaled $2 million. The total amount of recovered investment funds distributed to investors is $7 billion as of June 20, 2023. Two of the four funds have been completely liquidated, with the Supply Chain Financing Funds 13% liquidated at $288 million. Investors have still suffered a large loss of capital.
Some investors have filed lawsuits against Credit Suisse, but the litigation could take five years. Some investors may never recover their monies.
What You Can Do To Recover Losses In Credit Suisse Supply Chain Funds?
If you invested in Credit Suisse’s SCFF, you may be able to recover at least some of your investment. You can file a lawsuit as others have, or you can hold responsible the broker or broker-dealer that sold you the investment.
Working with Silver Law Group, you may be able to initiate a FINRA arbitration action or a lawsuit to recover lost monies from investments in Credit Suisse SCFF.
Did You Invest In Credit Suisse (Lux) Supply Chain Finance Fund?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are licensed to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Our team of attorneys have extensive experience representing international investors in claims in foreign jurisdictions establishing relationships with local attorneys as needed. If you have any questions about how your broker handled your account, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.