(Bloomberg) -- Greensill Capital's bankrupt U.S. unit won court approval to sell its Finacity Corp. business to White Oak Global Advisors for $7 million after reaching a deal with unsecured creditors.
The transaction includes an agreement with Finacity founder Adrian Katz, who dropped demands for $21.2 million in payments related to Greensill's purchase of Finacity in 2019. In return, the bankrupt U.S. unit will not try to sue Katz or certain other insiders for their role in the deal.
Greensill is shedding Finacity to raise money for creditors just two years after acquiring the business.
“The companies never really accomplished the integration that was intended,” Greensill attorney Kyle J. Ortiz said during a virtual court hearing Tuesday.
Greensill's U.S. unit filed for bankruptcy in New York in March following the collapse of its parent in the U.K. The U.S. unit had acquired Finacity from Katz, who continued to lead the business after its purchase. Finacity helps companies turn their invoices into structured financing.
The case is Greensill Capital Inc., 21-10561, U.S. Bankruptcy Court for the Southern District of New York (Manhattan)
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