Greensill Capital’s biggest source of income was buying and selling invoices from risky companies that required insurance, underscoring its precarious business model, court documents have revealed.
Some 90 per cent of Greensill Capital’s annual revenues, which were $US420 million ($540 million) in 2019, came from insured receivables, Greensill founder and chief executive Lex Greensill told the UK High Court of Justice in a witness statement after filing for insolvency last week.
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Jenny Wiggins writes on business, specialising in infrastructure, telecommunications and transport. Connect with Jenny on Twitter. Email Jenny at jwiggins@afr.com
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Hans van Leeuwen covers British and European politics, economics and business from London. He has worked as a reporter, editor and policy adviser in Sydney, Canberra, Hanoi and London. Connect with Hans on Twitter. Email Hans at hans.vanleeuwen@afr.com
