In a statement published yesterday, DeFiance Capital’s CEO confirmed that the dispute over some $140m is assets with Teneo will be heard in Singapore. Teneo are the liquidators responsible for the Three Arrows Capital estate (3AC), following it’s fall from grace in 2022.
The dispute centres around the 3AC estate claiming that DeFiance Capital’s assets belong to the 3AC estate and should be used to pay off creditors, while DeFiance’s position holds that they have “exclusive, unfettered control and beneficial ownership over its assets, consistent with the wider industry understanding and all evidence supporting this position.“
While the liquidators had argued that the case should be settled in the British Virgin Islands (BVI) despite 3AC operating out of Singapore, DeFiance Capital had remained firm that that it should be resolved in the country as “all the important witnesses and documents are in Singapore and the dispute ought to be heard by the Singapore courts to ensure all relevant evidence will be available.”
According to one report, Judge Chua Lee Ming, who presided over the case, decided that it should be heard in Singapore, due to two main reasons.
- DeFiance Capital’s possession is held in Singapore
- Trust was substantially created here
“We hope that the decision of the High Court in Singapore will pave the way forward so that the liquidators will engage and work with us to focus on and resolve the substantive issues instead of spending even more time on procedural skirmishes.” – Arthur Cheong, CEO, DeFiance Capital.
Why Would Liquidators Want To Have The Proceedings Overseas?
According to pseudonymous Twitter user WassieLawyer, distressed businesses have less incentive to go through the most efficient procedures due to their bankruptcy. Therefore, they have little desire to settle any and all disputes in a cost-efficient manner.
According to DeFiance Capital’s official statement, Teneo have “incurred substantial costs in proceedings in the US in an attempt to hold Kyle Davies accountable to US court but failed in the end as he is no longer a US citizen.”
DeFiance Capital had also offered to have the dispute resolved in the Singapore International Commerical Court (SICC) to “to avoid a costly fight on where the dispute ought to be heard but that was not taken up by the liquidators.”
A Long Way Yet For 3AC Creditors
Despite the major win for DeFiance Capital, it seems that these disputes are still a long way from any proper resolution.
While 3AC’s Co-Founder Su Zhu was reportedly seen in Singapore recently, Teneo has maintained that it has been difficult to obtain much cooperation from 3AC’s founders. Chain Debrief had previously obtained a comment from a reliable source that possesses legal expertise in this matter, who stated that “the liquidators still have not taken further steps to compel the founders to cooperate, for instance by taking out contempt proceedings.”
In the meantime, 3AC Co-Founders Su Zhu and Kyle Davies have since started a new venture, OPNX, which has already received an official reprimand by Dubai regulators.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chain Debrief