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Lex Greensill told the London High Court that he still suffers from post-traumatic stress disorder after cutting negotiations with Japan’s SoftBank in search of funds to save a loan company that collapsed in 2021.
Over two days in the Eyewitness Box – his first public testimony since Greensil Capital collapsed into administration in March 2021 – Australian financiers detailed their bruises with Japanese technology groups over emergency funds in the second half of 2020.
Greensill described SoftBank as a “fierce and political” organization that claimed “silence” over a controversial deal that could scare SoftBank investors. He accused SoftBank founder Masayoshi of refusing to a significant oral agreement and extracting “painful” terminology from him during late-night negotiations.
The financial figure who wore a refreshing blue suit and had a beautiful beard is not the defendant in this case. This is related to the dispute between Credit Switzerland and SoftBank investment funds.
The Credit Suisse Fund is seeking more than $440 million from SoftBank, which is allegedly allocated to cover the losses suffered by Swiss Bank clients from investments related to Greensill Capital.
Softbank denied the claim, and its attorney said the case was “a classic example of a claimant throwing a party in a deep pocket trying to seek accusation for losses from his own negligence.”
In a written submission, a Japanese group lawyer said Greensill had “showed hostility” to SoftBank in an interview with liquidators in 2021.
Softbank’s Vision Funds is a leading investor in Greensill Capital, pouring $1.5 billion into the 2019 bill lending startup.
Greensil told the court that his son agreed to coach him during his “often weekly” trip to Tokyo, praising Japan’s large-value people as someone who “looks over the horizon in a way that most ordinary people can’t.”
However, the relationship later deteriorated. Greensill told the court that his son made a “verbal commitment” to ensure a dangerous loan to one of the Vision Fund companies, but he just said the founder of SoftBank doesn’t remember the conversation later.
This led to a series of difficult negotiations that SoftBank agreed to provide $440 million. Softbank also won large stakes in Australian financier companies and other sweeteners in return for its funds.
Greensil said his son also “extracted personal guarantees” from him, worth $50 million on an early morning call. He told the court that these consultations left him with “three degrees of burns on most of my body.”
Additional negotiations were made from SoftBank over the possibility of an additional $1.5 billion emergency loan during the 2020 Christmas period. Greensill said he was following the “Gazirion” call at this point, describing his late December birthday as “one of the most comfortable days of my life.”
Greensil said there was a “cone of silence” in negotiations with Softbank over the restructuring of Caterra.
“They didn’t want to know the world because it was a very bad thing for their stock prices,” Greensil argued.
Greensil confirmed with the court that he had previously told one of his company that his son used SoftBank shares to fund his lifestyle.
Greensil, according to the transcript of an interview released to the liquidator to the journalist, said, “What many don’t know is that basically Masa lives a very big lifestyle and is funded by opposing his SoftBank stock.”
The trial continues.
