ICYMI: Three Arrows Capital files for Chapter 15 bankruptcy in New York
, is seeking the protection of its US-based assets amid 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 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." "Without the relief requested herein, creditors may pursue a value-destructive race to the courthouse to exercise rights in a manner that would enhance their own position vis-à-vis other similarly situated creditors. Such a turn of events, would undermine the very purpose of the BVI Proceeding: to establish an orderly, value-maximizing liquidation of the Debtor’s assets for the benefit of all creditors," the petition stressed.BloombergThe document also notes that one of 3AC's creditors has initiated arbitration proceedings against it, and is currently seeking "emergency relief to seek to conserve the Debtor’s assets, or, alternatively, freeze the Debtor’s assets pending an arbitration of its claims." The creditor is not named, though they are identified as having begun those proceedings in New York City. According to the petition, the arbitration has been"temporarily stayed."A copy of the bankruptcy petition can be found below:
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