Germany's Bafin submits insolvency filing to wind up Greensill Bank, court says

March 16, 2021 4:23 AM EDT

FILE PHOTO: Logo of Greensill Bank is pictured in downtown Bremen, Germany, March 10, 2021. REUTERS/Fabian Bimmer/File Photo

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FRANKFURT (Reuters) - Germany's financial regulator Bafin has submitted a filing to a court in Bremen to start insolvency proceedings for Greensill Bank, a spokeswoman for the court said on Tuesday.

Greensill Bank was locked down by BaFin this month with a warning that there was an imminent risk that its debt would become unmanageable. The regulator also questioned some of the bank's financial accounts.

"We received an application from BaFin yesterday (Monday) evening to open insolvency proceedings regarding Greensill Bank AG," a spokeswoman for the district court told Reuters.

The bank's owner, Greensill Capital, entered insolvency last week after losing insurance coverage for its debt repackaging business.

BaFin and Greensill Capital were not immediately available to comment. Greensill's insolvency administrators Grant Thornton declined to comment.

Greensill Capital has previously said the bank always sought external legal and audit advice before booking any new asset.

(Reporting by Patricia Uhlig and Tom Sims; Editing by Riham Alkousaa, Maria Sheahan and Edmund Blair)

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