Greensill Capital, the struggling supply chain finance firm, is said to seek insolvency protection in Australia after Credit Suisse suspended $ 10 billion (£ 7 billion) in funds linked to operations loan from the London-based company.

Greensill, supported by the Japanese group SoftBank, seeks to invoke a “safe harbor” in Australia, where its parent company is registered, the Financial Times reported, citing people familiar with the subject.

The finance company, which counts former Prime Minister David Cameron as an adviser, declined to comment.

It is also said to be in talks to sell its operating activities to Apollo Global Management for around $ 100 million. German financial regulator Bafin has meanwhile supervised Greensill Bank directly, according to information released on Tuesday evening.

Grant Thornton, that the the Wall Street newspaper said Monday was appointed by Greensill for advice on a possible restructuring, also declined to comment on the FT report.

On Monday, Credit Suisse froze funds linked to Greensill, which provides financing to companies including steel magnate Sanjeev Gupta, citing “considerable uncertainty” over the valuations of some holdings.

Swiss asset manager GAM said on Tuesday it was shutting down a fund that invested in loans from Greensill, putting additional pressure on the company and Mr Greensill as he fought to save the remains of its supply chain financial empire.

GAM to close $ 842 million GAM Greensill supply chain finance fund for subscriptions and redemptions “as a result of recent market developments.”

Meanwhile, SoftBank Group’s Vision Fund has significantly written down its $ 1.5 billion stake in Greensill and plans to reduce the valuation to near zero, according to Bloomberg.

The company was founded by Australian billionaire and former Citigroup banker Lex Greensill in 2011.

Greensill had pioneered supply chain finance, a form of cash advance that allowed a business to pay suppliers up front through loans. He also sold stakes in these advances to banks, such as Credit Suisse.

Greensill said: “Greensill acknowledges Credit Suisse’s decision to temporarily block the two supply chain finance funds that process assets originating from Greensill. We remain in advanced talks with potential outside investors in our business and hope to be able to keep abreast of this process as soon as possible. “

A Greensill spokesperson added: “A regulatory audit of the bank has been underway since the fall. In particular, this regulatory audit report did not reveal any wrongdoing by the bank. ”