coindesk.com
The liquidation process of Three Arrows Capital is going to move to Singapore next, if lawyers representing the British Virgin Islands (BVI)-based liquidators are successful, the Straits Times reported Friday.
The Times reported that BVI-based Teneo has hired Singapore-based WongPartnership LLP to petition the High Court for provisional relief that would allow Teneo to administer Three Arrows’ assets in the city-state and subpoena co-founders Su Zhu and Kyle Davies.
If Teneo’s lawyers are successful, Teneo would be able to secure Three Arrows’ assets in Singapore for the hedge fund’s creditors, lawyers who spoke to The Times said.
One route that lawyers could take is to examine what fault the founders had in the fall of Three Arrows.
Should the liquidators be able to prove that the collapse of Three Arrows was due to the mismanagement or misconduct of its co-founders, there might be a pathway to pursue seizing their assets for the benefit of creditors, lawyers said.
Zhu is in the process of selling a house worth close to S$50 million ($35 million), CoinDesk reported, and has a number of properties under both his and his wife’s name.
Three Arrows’ OTC trading desk, TPS Capital, is said to be cash-rich and will likely be included in the lawyers’ application.
It is not known when the court will make its decision.
The case is far from a sure thing, lawyers that spoke to CoinDesk have said, and Three Arrows will have a number of defenses available to them.