Greensill Bank was locked down by BaFin this month with a warning that there was an imminent risk that its debt would become unmanageable. The regulator also questioned some of the bank’s financial accounts.
“We received an application from BaFin yesterday (Monday) evening to open insolvency proceedings regarding Greensill Bank AG,” a spokeswoman for the district court told Reuters.
The bank’s owner, Greensill Capital, entered insolvency last week after losing insurance coverage for its debt repackaging business.
BaFin and Greensill Capital were not immediately available to comment. Greensill’s insolvency administrators Grant Thornton declined to comment.
Greensill Capital has previously said the bank always sought external legal and audit advice before booking any new asset.
To read the full article, Click Here