3AC’s Kyle Davies claims creditors ‘frustrated’ with bankruptcy process

Three Arrows Capital’s co-founder Kyle Davies claimed that the firm’s creditors are “frustrated” with the ongoing bankruptcy process.

They complained about high costs, delays due to inter-creditor disputes and how the estate is being valued during an hoc meeting Wednesday, Davies said on Twitter.

“We believe the best way forward is to reduce the ongoing legal costs, pursue claims on a contingency basis against Luna consortium/FTX/Genesis, and organize better ways to deal with asset sales/distributions,” he wrote.

The crypto hedge fund once had significant investments across the market, including in Terra’s native LUNA token — which fell to almost zero in May. Three Arrows filed for bankruptcy on July 1.

Davies also claimed Genesis’s collateral claim “could be $500m too high” and that its role on the creditor committee “could be reconsidered.”

“Creditors may decide to establish an ad hoc creditor committee to meet regularly in order to progress the interests of the estate,” he added.

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