3AC Liquidators Ask Singapore Court to Accept BVI Proceedings

According to a report in the local press today, Three Arrows Capital (3AC) liquidators are requesting the Singaporean legal system to recognize their British Virgin Islands (BVI) liquidation proceedings. The advisory firm Teneo, which a BVI court appointed, reportedly engaged the Singapore legal firm WongPartnership to seek the High Court for permission to summon 3AC co-founders Su Zhu and Kyle Davies and to manage the fund’s assets. Teneo’s primary responsibility as a liquidation handler is to safeguard 3AC’s assets and identify its creditors. In essence, Teneo is speaking for the creditors. Three Arrows – Currently Insolvent According to attorneys engaged in the lawsuit, one avenue they may pursue is determining what role the 3AC founders may have personally played in the failure of the fund. The liquidators may try confiscating their assets if they show wrongdoing or poor management. After being liquidated by its lenders, Three Arrows is currently insolvent. The Terra ecosystem’s demise caused the fund to suffer substantial losses, and a broader industry selloff caused additional instability. According to reports from Zhu and Davies, the co-founders of 3AC are attempting to figure out how to pay back their lenders and counterparties in June. Earlier this week, a court in the Southern District of New York authorized subpoenas issuance to the founders and pertinent companies to gather the necessary data for the inquiry.The po...