Three Arrows Fund, Ltd. (In Liquidation) (“TAFL”) was granted Chapter 15 Recognition of its Foreign Proceeding by the United States Bankruptcy Court Southern District of New York following a hearing on 11 March 2024. TAFL was one of two apparent feeder funds that invested a significant portion of their assets into Three Arrows Capital, Ltd (In Liquidation) ("TACL").
Paul Pretlove, David Standish and James Drury from Interpath Advisory, duly appointed joint liquidators of TAFL, an exempted company with limited liability in liquidation in the British Virgin Islands, filed a petition for recognition under Chapter 15 of the Bankruptcy Code on 8 February 2024. Chief Judge Martin Glenn approved the petition over the objection of the TACL liquidators.
Over 120 individuals and corporates held investments in TAFL’s DeFiance and Starry Nights share classes exceeding US$250 million in value as at the date of TAFL’s last struck NAV dated 31 January 2022. The Founders of Three Arrows, Kyle Davies and Su Zhu, owned the remaining share classes of TAFL, and are currently the subject of a worldwide asset freeze.
The TAFL liquidators will now seek discovery from various parties to assess the merits of potential claims to assets and other recovery actions on behalf of TAFL. This represents a significant step in the liquidation of TAFL and gives those investors the best possible prospects for a recovery of their losses.
The TAFL liquidators were supported by Hugh Wright of Interpath (BVI) Limited and represented by John Pintarelli, Patrick Fitzmaurice, Hugh McDonald, Rahman Connelly and Alana Lyman of Pillsbury Winthrop Shaw Pittman LLP as US Counsel and Scott Cruikshank, James Henson and Hugo Costa Liziario of HFW as BVI Counsel.
