Connect with us


Three Arrows Capital’s Liquidation: Estimated 46% Creditor Recovery

A detailed overview of Three Arrows Capital’s liquidation process, with an estimated 46% recovery rate for creditors, according to the latest Teneo report.

Claudia Fischer



Three Arrows Capital's Liquidation: Estimated 46% Creditor Recovery

Three Arrows Capital (3AC), recent developments suggest a recovery for those owed money. “the firm handling the liquidation, creditors can expect to receive approximately 45.74% of their claims,” Teneo stated. This estimate is based on the current price of the company’s assets, which is around $1.16 billion as of mid-December. These figures are set against claims totalling $2.7 billion, earmarked for recognition and distribution.

Breakdown of 3AC’s Assets

The bulk of 3AC’s holdings are in the form of illiquid tokens, which make up 82% of the total assets. These tokens, numbering 13 different types, are valued at $563 million based on current market prices. However, their liquidity is restricted by lay schedules extending to the end of 2026, with an average of $50 million expected to be released each quarter. By the end of 2024, it’s anticipated that $200 million worth of these tokens will become available.

In addition to illiquid tokens, the portfolio includes 6.9% in equity and investments, with cash constituting 4.8%. The liquidators have proactively capitalized on these assets, having already generated $5.4 million through staking and $1 million in interest from cash holdings. They have also converted liquid tokens and Non-Fungible Tokens (NFTs) into fiat currency, realizing $66 million from these sales.

Legal Proceedings and Asset Freezing

Teneo’s report discusses legal actions involving 3AC’s co-founders, Su Zhu and Kyle Davies, and Davies’ wife, Kelly Chen. The British Virgin Islands has ordered the freezing up to $1.1 billion of their assets. Zhu, who faced legal troubles in Singapore, was recently released from house arrest after serving a reduced sentence.

Also Read: Black Friday’s Impact on Expanding Crypto Market

The liquidators have lodged claims for bankrupt trading against the 3AC founders totalling $1.078 billion, with additional claims against Davies and Chen. Despite these challenges, the whereabouts of Davies remain known, though his cooperation with the proceedings has been limited.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *