Greensill Capital Files for Chapter 15 Bankruptcy in New York

Greensill Capital UK filed for bankruptcy on Wednesday in New York to protect itself from a lawsuit filed by a disgruntled client.

• The Chapter 15 bankruptcy petition is designed to protect the banking unit’s assets in the U.S. and halt any related legal actions while the company reorganizes in its home country
• The company filed bankruptcy in response to a breach of contract lawsuit filed in March against it by Bluestone Resources Inc. Greensill is required to answer the complaint next month, but is asking the court temporarily halt the suit before then
• Greensill filed for administration in the U.K. ...