Update to the TrueFi Community,
As has been posted about here previously, Archblock has been acting as Special Servicing Agent (SSA) for the two remaining unresolved loans in the tfBUSD TrueFi DAO pool (the “Pool”):
- Blockwater Technologies (“Blockwater”): original amount of the loan, 3,419,190 BUSD
- New World Holdings / Invictus Capital (“Invictus”) : original amount of the loan, 1,018,630 BUSD
As a reminder, both of these loans defaulted in 2022 and Archblock has been working continuously since those defaults to recover as much value as possible for the lenders of the Pool through direct and legal channels.
Below we give an update on each of those two situations:
Legal Action Against Korea-Based Blockwater
Archblock’s special servicing team, in collaboration with local Korean counsel, are actively pursuing the recovery of Blockwater’s outstanding loan balance and other applicable damages. We’ve taken significant steps, including submitting a Bankruptcy Application against Blockwater and a detailed Criminal Report against responsible Blockwater principals. The Korean court’s response was the issuance of a bankruptcy order, duly communicated to Blockwater, while a dedicated investigator in Korea handles the Criminal Report.
Through our legal efforts, we’ve secured an additional payment of $125K, totaling $769,433.06 to date from Blockwater, representing approximately 22% repayment of the pre-restructuring loan balance (inclusive of payments made under the amended loan payment schedule.). We continue to work with Korean counsel to recover additional amounts and are waiting for any progress in the criminal proceeding to potentially aid recovery efforts. We will make a decision about future legal action and timing for distribution of the recovered amounts over the next month and will update the community early in the fourth quarter of 2023 on progress and next steps.
On June 4, 2022, the shareholders of New World Holdings (the corporate entity of the borrower Invictus; “NWH”) resolved to voluntarily liquidate the company and appoint Barry Lynch of Alvarez & Marsal Cayman Islands Limited as the Joint Voluntary Liquidators (“JVLs”). The Archblock special servicing team is actively collaborating with the JVLs, who have identified promising avenues for recovery given the net assets contained in NWH. While the liquidation of the net assets will take some time, we maintain cautiously optimistic on the liquidation prospects of NWH, anticipating significant recovery for the lenders with a strong possibility for a near par recovery. We will update the community on the Invictus situation in the fourth quarter of 2023.