Lex Greensill Banned as Director for Nine Years After Firm's Collapse

The disqualification relates specifically to lending that caused a $440 million loss to Credit Suisse.

Lex Greensill, the former financier and founder of Greensill Capital, has been disqualified from acting as a company director in the UK for nine years. The ban follows the collapse of his supply chain finance firm in 2021, which left liabilities exceeding £1.6 billion.

The disqualification undertaking was signed with the Insolvency Service, avoiding a scheduled trial. Greensill was found to have breached his duty as a director by failing to exercise reasonable care, skill, and diligence.

Background

Greensill Capital collapsed in March 2021. The disqualification centers on lending to Katerra, a US construction company. Greensill directed transactions that removed legal protections from loan notes without required consents, leading to Credit Suisse losing its investment. The Insolvency Service had originally sought a 15-year ban.

Official Statements

Duncan Beach, CEO of the Insolvency Service, said:

"Director disqualifications exist to protect the public from those who have demonstrated they are unfit to run companies. A nine-year ban is a significant period... and reflects the serious nature of Lex Greensill's conduct."

A spokesperson for Lex Greensill responded:

"After four years of investigation, this matter has concluded with no finding that Mr Greensill acted dishonestly or in bad faith."

Related Cases

• Greensill faces a separate civil action by administrators of Greensill Capital (UK).
• The UK's Serious Fraud Office is investigating suspected fraud, fraudulent trading, and money laundering concerning companies within the Gupta Family Group (GFG) Alliance, including financing arrangements with Greensill Capital.