Lex Greensill Says SoftBank Managers Felt Threatened by His Ties to Founder

Lex Greensill has opened up in a London high court trial, revealing that several senior managers at Japanese tech investment giant SoftBank felt “threatened” by his close relationship with the company’s founder, Masayoshi Son. Greensill, whose supply chain finance company collapsed in 2021, stated that he travelled frequently to Tokyo for mentoring sessions with Son, addressing him with the respectful Japanese honorific “Son-san”. These interactions, he claimed, sparked tension among key SoftBank executives who, in his words, sought to “make things difficult” for him.

The case in question involves a former Credit Suisse fund, now under the control of UBS, suing SoftBank for $440 million (£325 million) over an alleged restructuring arrangement linked to Greensill prior to its collapse. At its core are funds Greensill lent to Katerra, a now-defunct US construction firm in which SoftBank also held investments. Credit Suisse asserts that SoftBank worked with Greensill to coordinate a deal in late 2020 that financially benefited SoftBank while disadvantaging Credit Suisse clients. SoftBank has denied these allegations, describing them as attempts by claimants to unfairly shift blame onto “deep pockets” for losses caused by risks they willingly undertook.

During his testimony, Greensill, dressed sharply in a dark blue suit, described the collapse of his enterprise as a deeply painful experience. He recounted how 29 December 2020, his birthday, became one of the most distressing days of his life as it became evident that SoftBank would not deliver $1.5 billion in bridging loans that could have salvaged his company. Greensill Capital was ultimately brought down by insurers declining to renew contracts vital to sustaining billions in risky loans, with companies tied to industrialist Sanjeev Gupta being among the most significant borrowers. The collapse led to Credit Suisse suspending $10 billion worth of Greensill-packaged funds, leaving wealthy clients to absorb significant losses. The ripple effect of this failure contributed to a broader erosion of investor confidence, culminating in the eventual demise of Credit Suisse in 2023.

Greensill’s operations were once valued so highly that the company considered a £22 billion stock market listing and even enlisted prominent advisors, including former UK Prime Minister David Cameron and Julie Bishop, the former Australian foreign minister. However, its downfall raised questions over regulatory oversight, risk exposure, and political connections. Cameron found himself embroiled in controversy after lobbying efforts to secure government-backed Covid loans for Greensill were made public, leading to months of political scandals in Whitehall.

Masayoshi Son, SoftBank’s visionary founder, remains a critical figure in this trial. With an estimated net worth of $29 billion, Son is renowned for bold investments across tech industries, including stakes in Alibaba, ByteDance, and Arm. While the pandemic initially boosted tech valuations, Son’s SoftBank later faced significant retrenchment amid dropping valuations. Son remains committed to securing strategic opportunities despite market challenges.

The high court proceedings are set to continue until 4 July, with UBS and SoftBank presenting their arguments in what could be a landmark case for financial accountability. UBS has pledged to pursue all avenues to recover funds for stakeholders, while SoftBank stands firm against allegations of collusion, safeguarding its reputation as a prominent global investor.