Sunday 9 May 2021 12:03 pm

Taxman owed millions following Greensill collapse

The taxman is owed millions of pounds following the collapse of scandal-hit finance firm Greensill Capital.

Documents from administrator Grant Thornton show that HM Revenue & Customs is among more than 200 creditors out of pocket since the company’s collapse in March. It is owed $8m (£5.7m), the Sunday Times reported.

In total Greensill owes more than $1.5bn, including roughly $500m to insurers such as Swiss Re and Chubb. 

Greensill, which lent money to companies by buying their invoices for cash, fell into administration after credit insurers withdrew cover.

The move was prompted by Greensill’s huge exposure to Sanjeev Gupta’s GFG Alliance, which in turn is now facing potential collapse and is scrambling to raise funds.

Greensill has also faced questions over its links to David Cameron, who acted as a lobbyist for the company.

It has emerged that the former prime minister repeatedly texted chancellor Rishi Sunak asking for emergency support for Greensill during the pandemic.

Both Cameron and the company’s founder Lex Greensill face a grilling by MPs next week over the collapse of the supply chain finance firm.

The filings also show that the bills for administrators and lawyers will come to more than £30m in the first year alone.

Grant Thornton said charges could reach £15m by March next year, while fees for law firms Simmons & Simmons, Herbert Smith Freehills and Allen & Overy are expected to hit between £12m and £16m.

Share
Tags: