Lex Greensill Banned from UK Directorships

Lex Greensill, founder and former chief executive of Greensill Capital, has been banned from directing companies in the UK for nine years. This disqualification follows an investigation by the United Kingdom — Insolvency Service into his conduct at Greensill Capital, which collapsed in March 2021 with over £1.6 billion in liabilities. The United Kingdom — Insolvency Service alleged that Lex Greensill made misrepresentations and non-disclosures to insurers, investors, and company boards, leading to billions of dollars in losses. Specifically, the case centered on a receivables finance arrangement with Katerra, where Greensill Capital originated and securitized notes sold to a UBS Group — Credit Suisse fund. When Katerra receivables defaulted, SoftBank Group provided US$440 million to Greensill to repurchase the notes, but Greensill used the funds for other purposes, leaving UBS Group — Credit Suisse with US$440 million in losses. Lex Greensill signed a disqualification undertaking, a legally binding agreement not to dispute certain facts, to end planned court action. The ban takes effect on June 23, preventing him from acting as a director or being involved in company management in the UK without court permission. While Lex Greensill's spokesperson stated there was no finding of dishonesty or bad faith, the United Kingdom — Insolvency Service emphasized the serious nature of his conduct.