Greensill, Athene deal 'improbable' as JPMorgan, other lenders get involved

JPMorgan Chase & Co., together with UniCredit SpA and UBS Group AG, is extending a $6 billion liquidity facility to Greensill Capital (UK) Ltd.'s key technology supplier, Taulia Inc., derailing a potential deal between Greensill and Apollo Global Management Inc.-backed Athene Holding Ltd., Bloomberg News reported, citing people with knowledge of the matter.

Greensill has filed for administration in the U.K., with the company's lawyers noting that the lender had fallen into "severe financial distress" and is unable to repay its debts. Greensill provided supply chain financing with Taulia, through which Greensill gained access to investment-grade clients.

Athene had emerged as the only credible potential buyer for Greensill, reportedly offering about $60 million for the company's IT and intellectual property. However, the talks between Athene and Taulia stalled over concerns regarding how Greensill-funded customers would be financed going forward. Apollo was planning to use Athene to provide around $7 billion in capital required to take over Greensill's supply chain lending customers, according to a separate report by The Wall Street Journal that cited unnamed sources.

The involvement of JPMorgan, which plans to provide $3.8 billion in funding, and the other lenders renders a deal between Greensill and Athene "improbable," a person with knowledge of the matter told Bloomberg. The news outlet also noted that the new funding for Taulia cuts Greensill off from its major supplier of supply chain financing for investment-grade companies, making it a less attractive target.

Representatives for Apollo, Greensill, Taulia, JPMorgan and UBS declined to comment, while a UniCredit spokesperson did not immediately respond to requests for comment, according to the report.