Lex Greensill, the founder of the collapsed supply chain finance firm Greensill Capital, has been banned from serving as a company director in the UK for nine years. The Insolvency Service announced on Thursday that Greensill had signed a disqualification undertaking, bringing the case to a close before a scheduled six-week trial.
The disqualification stems from Greensill's conduct leading to the 2021 collapse of his company, which owed more than £1.6 billion. The Insolvency Service found that Greensill breached his legal duty to exercise reasonable care, skill, and diligence as a director, causing a $440 million loss to Credit Suisse. The ban, which is above the average for director disqualifications, reflects the serious nature of his conduct.
Greensill's disqualification specifically relates to lending to Katerra, a US construction company. He directed his companies to enter transactions that removed legal protections from loan notes without the required written consents, leading to Credit Suisse losing its investment. A spokesperson for Greensill noted that there was no finding of dishonesty or bad faith.
The collapse of Greensill Capital also impacted companies owned by Sanjeev Gupta's GFG Alliance, which relied heavily on Greensill financing. Gupta has since lost control of parts of his Liberty Steel empire. The Serious Fraud Office continues to investigate suspected fraud and money laundering related to GFG's financing arrangements with Greensill Capital.
