The bank of Credit Suisse and West Virginia Republican Governor Jim Justice are nearing a settlement over the nearly $700 million that Bluestone Resources owes the bank's clients.
The mining company borrowed loans from Greensill Capital, a U.K. supply chain finance firm that collapsed in March 2021.
After Greensill collapsed last year, Credit Suisse was under pressure to recover money that the supply chain company lent through a group of funds set up by the Swiss bank for 1,200 of its clients.
Justice and Credit Suisse will make regular payments to the Swiss bank and increase production with the addition of Bluestone mines.
The Swiss bank will have an option on funds raised by a potential sale of the mines that would take place later on.
The settlement is expected to be signed within the next few weeks, according to The Financial Times.
This comes after a proposed settlement from September was scrapped. Justice had offered to pay $300 million to Credit Suisse, and the bank would receive half of the proceeds of the sale of the mining business in an effort to settle the debts. The deal was reliant on Bluestone negotiating a $300 million refinancing deal from an unnamed party, and that deal never happened.
The deal isn't dependent on any third-party groups.
Credit Suisse Asset Management continues to pursue all possible avenues for recovery of the funds on behalf of our investors, and this remains a priority, the bank said in a statement.