The Financial Times reported Wednesday that TigerGos Capital Management, the family office run by Bill Asia’s former manager of Tiger Asia, is preparing to go bankrupt as banks are involved in financing their trades.
Archeogos has hired restructuring consultants to assess potential legal claims from banks and plan for the possible termination of its operations, the report cited two people familiar with the matter.
After ViacomCBS, the family’s office was in trouble, a company Archives announced a stock offer in March. The fall in the share price of the media company alarmed banks, which called on the fund for more collateral.
The fund missed out on margin calls, setting up a scuffle between Wall Street banks that had begun financing its trades.
Global banks suffered losses of approximately $ 10 billion from the Archaeos fallout. Credit Suisse, Nomura Holdings and Morgan Stanley were some of the banks that were a hit.
The New York-based fund had approximately $ 10 billion in assets, but more than $ 50 billion in assets. The saga is likely to have a regulatory rebound, as both the Securities and Exchange Commission and the Federal Reserve have said that the situation is under investigation.
Many banks that have lost money are preparing to issue a “letter of demand” to archaeologists, who request for payment before starting a legal claim, about three people in the process Told ft.
Arcots declined to comment on the FT report.
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