Creditors of 3AC Express Frustration with Bankruptcy Process, Organize Asset Sales

• Three Arrows Capital creditors expressed frustration with the bankruptcy process during an ad hoc call.
• Kyle Davies, the co-founder of the bankrupt hedge fund, announced regular meetings with creditors.
• The group discussed ways to reduce ongoing legal costs and organize asset sales/distributions.

Creditors of the bankrupt hedge fund Three Arrows Capital (3AC) have been expressing their frustrations with the ongoing bankruptcy process during an ad hoc call with the co-founder of 3AC, Kyle Davies. During the call, Davies announced the creation of a 3AC creditors group and invited all creditors to join the group. He also announced regular meetings with creditors, noting that all involved parties are welcome to attend.

The main topics discussed in the call were ways to reduce ongoing legal costs, pursue claims on a contingency basis against Luna consortium/FTX/Genesis, and organize asset sales/distributions. The group is trying to maximize the estate value of 3AC, but have been met with several roadblocks due to the lack of cooperation from the founders of 3AC, Davies and Zhu Su.

The lawyers representing the liquidators in the case have been trying to trace and recover assets since 3AC filed for Chapter 15 bankruptcy in a New York court on July 1. They have been unable to locate Davies and Su, who have yet to cooperate with the liquidators. This has caused a delay in the process, as the liquidators are trying to put things together without any help from the two founders.

The creditors group is hoping to make progress on the bankruptcy case, and is actively looking for ways to reduce costs and maximize the value of the estate. They have been urging Davies and Su to cooperate with the liquidators if they want to help investors. The group is also looking for ways to better organize asset sales and distributions so that the creditors can get the most out of the bankruptcy process.

Overall, creditors of 3AC are hoping that the regular meetings and the creditors group will help to expedite the bankruptcy process and maximize the estate value. They are also hoping that Davies and Su will eventually cooperate with the liquidators in order to help investors get the most out of the bankruptcy process.