UK-based lending platform White Oak Commercial Finance Europe has filed court proceedings in London against broking giant Marsh, which served as the commercial insurance broker for collapsed company Greensill Capital.
A report by the Financial Times said White Oak acquired US$143 million of receivables from the now-insolvent supply chain finance firm between December 2020 and February 2021, not knowing about Greensill’s insurance woes.
As previously reported by Insurance Business, Greensill was insured by The Bond & Credit Co. (BCC), which in 2020 notified the business and its broker that BCC would not be renewing, increasing limits, extending, or underwriting new policies for Greensill due to certain concerns.
In its lawsuit, White Oak is accusing Marsh of failing to take reasonable steps to ensure accurate representations, particularly in relation to Greensill’s trade credit insurance or lack thereof.
BCC was part-owned by Insurance Australia Group (IAG) before it was acquired by Tokio Marine in 2019. White Oak, in 2021, sued IAG in hopes of collecting payment for the receivables. Records show a cross claim was filed earlier this year.
Marsh, meanwhile, has not issued a statement in response to White Oak’s legal action against the brokerage.
What do you think about this story? Share your thoughts in the comments below.
