Bankruptcy case involving collapsed crypto hedge fund Three Arrows Capital (3AC) continues to unfold; Co-founder Kyle Davis claims the company’s creditors are “frustrated” with the way the process is unfolding, citing high legal costs, among others, as reasons for the impasse.
Kyle Davis says creditors are creating backlogs
Kyle Davies, co-founder of bankrupt hedge fund Three Arrows Capital (3AC), revealed in a series of tweets that the company had formed a creditors’ committee to address some of the issues related to the company’s bankruptcy process.
According to Davis, creditors are frustrated with the way the situation is unfolding, citing rising legal costs as one of the main reasons for the perceived hurdle in the process.
In addition, he noted that the group believes that the assets are not being managed properly and that the value of the estate is not being ‘maximised’.
“We believe the best way forward is to reduce ongoing legal costs, file claims on a contingent basis against the Luna/FTX/Genesis consortium, and organize better ways to deal with asset sales/distributions.”
Kyle Davies, co-founder of Three Arrows Capital (3AC),
Some of the key topics of discussion at the meeting are proposed plans to file claims against some of its debtors, including Do Kwon’s Luna, Sam Bankman-Fried’s FTX and Genesis, and better organization of asset sales. Davis said the meetings would become regular and encouraged all creditors to join the committee.
It’s been a tumultuous period for the Singapore-based fund since it filed for Chapter 11 bankruptcy in July 2022. The whereabouts of both founders became the subject of contention when reports surfaced that both were missing, inevitably crippling the company’s asset recovery process. the liquidators had started.
In a further development on January 5, the United States Bankruptcy Court for the Southern District of New York subpoenaed Davies to produce documents allowing access to 3AC’s assets. The lawyers representing the liquidators then proceeded to label the 35-year-old man in a tweet containing a redacted copy of the subpoena.
