Greensill Bank Sues UK Over Wrongful Loan Guarantee Termination

Germany’s defunct Greensill Bank AG is seeking about £330 million ($441 million) from the UK, accusing it of wrongly canceling Covid-era loan guarantees it agreed with Australian financier Lex Greensill’s trade finance arm.

Greensill Capital UK Ltd didn’t “act in good faith” by lending millions more than it should have to firms linked to steel tycoon Sanjeev Gupta, lawyers for the UK government said in filings prepared for a Thursday court hearing. The UK terminated the loan guarantees in 2022 arguing that Greensill Capital failed to comply with the program’s rules.