During the call, creditors of Three Arrows Capital voice their unhappiness with the bankruptcy procedure

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In response to complaints from creditors regarding the costs of bankruptcy, Kyle Davies, the co-founder of the bankrupt hedge fund Three Arrows Capital (3AC), announced the formation of a 3AC creditors association via a Twitter thread on January 11.

Davies claims that the continued costs and management of assets during the bankruptcy process are frustrating creditors, who complain that “intercreditor conflicts are delaying the process, and the estate value is not being maximized.”

The first gathering of the group covered a variety of topics, including how to cut down on “ongoing legal costs, pursue claims on a contingency basis against Luna consortium/FTX/Genesis, and organise better ways to deal with asset sales/distributions.” Without providing any additional information, Davies planned regular meetings and encouraged all creditors to participate.

On July 1, the business filed for Chapter 15 bankruptcy in a New York court; owners Davies and Zhu Su’s locations are unknown. Since then, attorneys for the liquidators in the case have been attempting to locate and retrieve assets, but the founders have been uncooperative. “Without their assistance, the liquidators are attempting to put things together. If they want to aid investors, they should work together, a source with knowledge of the situation said.

After authorization was given by Singaporean authorities in response to a request from a U.S. bankruptcy court, the liquidators’ final attempt to contact Davies and Su was a subpoena posted on Twitter on January 5.

In addition to information about the securities and unregistered shares, the subpoena seeks access to any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets, in order to provide liquidators with access to account information, seed phrases, and private keys for 3AC’s digital and fiat assets.

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