Zhu, whose whereabouts had been unknown for weeks, delivered an affidavit that disputed Teneo claims and elucidated the internal structure of the failed hedge fund.

According to a document seen by Bloomberg, Zhu delivered the affidavit in person on Aug. 19. In it, Zhu states that Teneo “had not provided an entirely complete or accurate version of events” to the Singapore court, which granted Teneo’s request for access to 3AC records in Singapore on Aug. 22.

Teneo, an advisory firm, was appointed in June to liquidate 3AC assets by a court in the British Virgin Islands, where Singapore-based 3AC had moved its registration. The fund had also announced its intention to move its headquarters to Dubai.

According to the affidavit, Teneo misrepresented the operations and relationships between 3AC-related entities, as well as the timeline of events. Zhu stated that Three Arrows Capital Pte Ltd (TACPL) was registered in Singapore until July 31, 2021. It was replaced on Sept. 1 of that year by ThreeAC Ltd in the British Virgin Islands as the manager of the master fund and two feeder funds — Three Arrows Fund Ltd, which was registered in the British Virgin Islands, and Three Arrows Fund LP, registered in the U.S. state of Delaware.

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Because of this structure, TACPL may not be able to comply with Teneo’s requests for information, Zhu stated, and that could lead to “potentially draconian consequences arising from the Liquidators’ exercise of their wide powers,” up to fines and the imprisonment of TACPL officers and representatives for contempt of court.

Teneo responded in a statement to Zhu’s affidavit saying, “The joint liquidators strongly disagree with the positions set out in Su Zhu’s affidavit. […] We remain optimistic that such parties will provide access to complete records and all relevant information to enable us to discharge our responsibilities fully in the interests of the creditors of 3AC.”

3AC has debts approaching $3 billion, and its collapse has had a ripple effect throughout the industry.

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