UBS is seeking to move past the Greensill scandal and address concerns with customers who invested in problematic funds. The bank has made an offer to buy back shares at 90% of their original value, allowing customers to reinvest their remaining funds. This deal is valid until the end of July and allows customers to transfer all risks to the bank.
The agreement with customers will help UBS clear up discussions with wealthy clients affected by the Greensill situation. The bank will now be pursuing defaulting debtors on its own behalf, rather than representing CS customers. UBS estimates it will need $321 million for debt collection efforts, including negotiations with debtors and potentially legal action against insurers.
Some major debtors include GFG Alliance, a British raw materials conglomerate, Katerra, a failed construction company, and Bluestone Resources, a coal mine operator owned by American entrepreneur Jim Justice. Negotiations with these debtors have been challenging due to a large portion of the CS-Greensill funds still outstanding.
UBS is not alone in dealing with financial repercussions from the scandal as other banks also owe money from Justice’s companies. While UBS aims to resolve the Greensill issue for its customers, the bank will continue to confront the aftermath of the scandal for years to come.
