Three Arrows Capital Filed For Chapter 15 Bankruptcy In New York

Crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy in a New York court.

Three Arrows Capital filed for bankruptcy

The US Bankruptcy Court for the Southern District of New York received the petition. The Friday news comes as the crypto hedge fund’s financial issues continue to worsen. A British Virgin Islands court has designated advisory firm Teneo to handle liquidation. On Thursday, financial regulators sharply criticized the company.

According to court records, Three Arrows Capital (3AC) is requesting protection for its US-based assets during the BVI court proceedings.

“The Debtor is an investment firm incorporated in the BVI with a focus on trading cryptocurrency and other digital assets that was reported to have over $3 billion of assets under management as of April 2022. The Debtor’s business has collapsed in the wake of extreme fluctuations in cryptocurrency markets. On June 27, 2022, the Debtor commenced a liquidation proceeding before the BVI Court, and that court has appointed the Foreign Representatives as joint liquidators of the Debtor. By filing the Petition to commence this chapter 15 case (the “Chapter 15 Case”), the Foreign Representatives seek to stay active efforts by individual creditors to seize assets and to preserve the status quo and afford the Foreign Representatives an opportunity stabilize the Debtor’s estate, preserve the Debtor’s assets, and conduct a complete investigation of the Debtor, claims against its estate, and its assets, including causes of action.”

Three Arrows Capital said in its petition

According to court filings, Three Arrows Capital is being represented by the law firm Latham & Watkins LLP. The news of the filing was first reported by Bloomberg.

According to the document, one of 3AC’s creditors has filed a claim against the company in arbitration and is currently requesting “immediate remedy to seek to conserve the Debtor’s assets, or, alternatively, freeze the Debtor’s assets pending an arbitration of its claims”. Although they are acknowledged as having started those procedures in New York City, the creditor is not named. The petition claims that the arbitration is currently “temporarily stayed.”

Chapter 15 bankruptcy is designed for insolvency cases involving multiple nations.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

Coincu News