Liquidators of Three Arrows Capital Ltd obtain court approval for US$100 million interim distribution

On 28th March 2024, the BVI Court granted the Joint Liquidators of Three Arrows Capital Ltd (in liquidation) (“3AC”) sanction to make an interim distribution of up to US$100 million of 3AC’s assets to its creditors.

3AC operated a high-profile and prominent cryptocurrency and digital asset hedge fund, with reported assets under management in excess of US$9 billion in 2021. 3AC entered liquidation in June 2022. Since then, the Joint Liquidators have received claims from creditors in excess of US$3 billion.

The Joint Liquidators applied for sanction of the distribution following receipt of a substantial claim by the liquidators of 3AC’s feeder fund, Three Arrows Fund Ltd, in 3AC’s liquidation on 14th March 2024, shortly before the proposed distribution by 3AC was due to be made.

David Chivers K.C. and Jack Rivett, instructed by Nicholas Brookes, Daniel Burkitt and Romauld Johnson of Ogier, acted for the Joint Liquidators of 3AC on the application.