Summary:
This proposal details the request for invoicing BUSD, USDC, and Alameda SBP pools for the Special Servicing Agent (the “SSA”) advisory and legal services rendered by Archblock. These services pertain to the ongoing legal pursuit of recovery from defaulted loans.
Background:
Since 2022, Archblock’s SSA team has been diligently working with the following borrowers to ensure maximum recovery from defaulted or restructured loans:
- tfBUSD TrueFi DAO pool (Link to the Latest Update Shared with TrueFi Community )
- Blockwater
- NWH/Invictus
- tfUSDC TrueFi DAO pool
- Delt.ai
- Alameda SBP
| Lending Pool | tfBUSD Pool | tfUSDC Pool | Alameda SBP |
|---|---|---|---|
| Original Loan Amount (Principal Only) | $4,437,820 | $5,500,000 | $7,280,000 |
| Principal Recovered To Date plus Additional Interest Payment from Restructured Loan | $769,433 | $1,537,363 | $0 |
| Estimated Recovery Based on Latest Developments | TBD | $6,837,856 | TBD |
Team Composition and Efforts:
The SSA team, composed of seasoned legal and financial professionals, has dedicated between 50-75 hours on average per month to defaulted/restructured loan recovery efforts. It is anticipated that these focused efforts will remain necessary for the foreseeable future, ensuring maximum recovery from the three borrowing pools.
Up until now, the SSA team has represented the DAO and SBP pool on a pro bono basis. However, given the extended nature of our engagement, it is necessary for Archblock to begin invoicing to ensure that our dedicated SSA team remains in place to further the recovery efforts.
Invoicing Proposal:
We propose a fee of $15,000/month for each lending pool, effective from September 1st, and continuing until the recovery process reaches a resolution.
Scope of Work:
Below are the key tasks the SSA team has been handling since the onset of the first default:
SSA Core Responsibilities:
- Loan Restructuring
- Negotiation with borrowers for loan restructuring.
- Management of loan and interest repayments.
- Active surveillance of borrower financial health.
- Legal
- Preparation of necessary documentation for legal proceedings and drafting of material legal documents.
- Collaboration with external counsel in applicable jurisdictions for local legal representation.
- Treasury/Forensic Analysis
- Comprehensive analysis of the flow of funds concerning borrowers’ assets and liabilities.
To provide transparency and regular updates, the SSA team commits to sharing a quarterly or as needed, report with the community. This report will highlight any new recoveries, restructuring, or legal developments associated with the three lending pools.
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