Japan-based telecommunications and internet group SoftBank has written down an investment of nearly $1.5bn in UK-based business finance provider Greensill, according to Bloomberg, which cited people familiar with the matter.
Founded in 2011, Greensill provides supply chain financing for small business customers, an area which is potentially problematic as it theoretically allows businesses to hide mounting debts.
The company is reportedly preparing to file for insolvency despite planning as recently as 2020 to launch an initial public offering that could have valued it at $7bn.
Greensill is in talks to sell some of its assets to Athene Holding and Apollo Global Management for a price expected to be roughly $100m. Credit Suisse and GAM Holdings have shut off payments to Greensill and German regulators have ordered it to freeze payments in case it becomes over-indebted.
SoftBank executed the writedown at the end of 2020 and expects the value of its stake to fall to almost zero. Its Vision Fund invested $800m in Greensill in May 2019 at a $3.5bn valuation, before adding $655m four months later, valuing the company at $4bn.
General Atlantic is also a Greensill shareholder, having provided $250m in a 2018 transaction that valued it at $1.64bn.
