Project Lifeboat

Issue:

There was protracted litigation between the General and the Limited Partner of a Limited Partnership as to the rightful ownership of the asset. KRyS Global was appointed liquidator of the Limited Partnership to safeguard its asset whilst the dispute was pending.

During the course of the liquidation, economic sanctions were levied against Russia.  The Limited Partner, a state-owned investment arm of the Russian Government, was potentially subject to the sanctions.  Accordingly, the liquidator had to be mindful of the impact of this on taking any steps regarding the asset.

Furthermore, the asset was shares in a Chinese start up Tech company which had been delisted following intervention by the Chinese Government. The delisting caused a price collapse and additional hurdles in market liquidity of the shares.

Resolution:

The liquidator in conjunction with his legal team identified the jurisdictions where approval was required to deal with the potentially sanctioned asset.  In addition, experts were brought in to address the sale of shares to deal with the outstanding costs of managing and safeguarding the asset.

Value Added:

KRyS Global was brought into a particularly thorny situation to manage and safeguard an asset that was potentially subject to sanction in multiple jurisdictions.

Working with their attorneys, they complied with the legal requirements in those jurisdictions and successfully liquidated a portion of the asset to cover the fees and expenses of safeguarding the asset. The assignment required creative, out of the box thinking to overcome practical barriers in converting part of the asset to cash and processing payment to the service providers.