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- One of Greensill Capital’s technology partner Taulia receives liquidity facility from JP Morgan.
- Of the US $6 billion liquidity window, US $3.8 billion has been provided by the bank.
- JP Morgan’s liquidity injection enables Taulia to cater to clients independently now.
Greensill Capital’s technology partner Taulia, a financial technology firm, has received much-needed liquidity from JP Morgan Chase & Co, according to a report in The Walls Street Journal. Of the US $6 billion liquidity window that Taulia has received, US $3.8 billion has been provided by the bank and had a contribution from UniCredit S.p.A and UBS Group AG.
Also read: What Brought Greensill Capital To the Brink of Insolvency Within Days?
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Greensill has filed for administration in the UK on Monday after some court documents revealed that discrepancies in insurances to loans worth £5.55 billion to its customers, underwritten by insurance company Tokio Marine. Tokio Marine had to withdraw insurance cover to Greensill’s loans worth AUS $4.6 billion after it found out that one of its employees had issued them without having the required authority to do so.
As part of its efforts to salvage the company, Greensill begun consultations with Athene Holding Ltd, an annuity seller that is backed by Apollo Global Management Inc, to sell a part of its operating business. But now JP Morgan’s deal with Taulia will make it difficult for Greensill to sell its business as it makes the company less attractive without a crucial technology provider.
Also read: Making millions through watermelon farming: The incredible journey of Peter Greensill
Greensill was an attractive proposition because of the viability of its supply-chain financing operations that it provided in association with Taulia. JP Morgan’s liquidity injection enables Taulia to cater to clients independently now and leaves Greensill with very little viable companies as prospective clients. Taulia provided backup for the front-end technology, which helped businesses to get financing from Greensill.
Also read: SoftBank Q3 Net Profit Swells to $11 Billion On The Back Of Vision Funds
Greensill’s collapse is expected to impact a huge number of jobs across the US, Europe, and Australia. Its collapse has left regulators, and lawmakers puzzled as the company had backing of big names from the financial world. In 2019, the company had received funding worth US $1.5 billion from SoftBank Group Corp’s Vision Fund. It also boasted of backing from Credit Suisse and Swiss finance house GAM Holding.
