White Oak is planning to file several new legal claims in Australia alleging that Greensill Capital’s insurers were aware there were problems with the collapsed firm’s insurance policies but didn’t tell the US financier, courts have been told.
Dozens of lawyers attended a Federal Court hearing in Sydney on Tuesday to sort out how 10 existing legal claims filed against Insurance Australia Group should proceed. The court heard on Tuesday that IAG could be hit with more claims.
IAG disclosed in August that it is defending itself against around $7 billion in claims stemming from cover written by an insurance agency that it half-owned, Bond & Credit Company, for client Greensill Capital.
White Oak, which describes itself as an international investment adviser and private credit firm, is among the former clients of Greensill Capital trying to recover money owed on securities it purchased from the group, which collapsed in 2021.
The US financier already has an existing claim against IAG in Australia related to debts owed by customers of GFG Alliance’s Liberty Commodities and this year filed a lawsuit in England’s High Court against Marsh McLennan, Greensill Capital’s insurance broker, claiming at least $US142 million ($223 million).
Legal counsel told the court that White Oak wants to file new claims against IAG and BCC, alleging that they failed to disclose concerns about insurance policies issued to Greensill Group entities and investigations into those policies.
New claims will also be brought against two entities owned by Japanese multinational insurance group Tokio Marine, which acquired BCC in April 2019. The entities are Tokio Marine & Nichido Fire Insurance Co and Tokio Marine Management (Australasia).
White Oak will
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