On February 5, 2019 QuadrigaCX was granted protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA). On April 11, 2019 the case was transitioned to a bankruptcy proceeding under the Bankruptcy and Insolvency Act (BIA). It has been reported that over 76,000 creditors will be involved in the proceedings.
Argo Partners is currently interested in purchasing creditor claims in the QuadrigaCX case. What this means for creditors is they now have an alternative to waiting out the bankruptcy process, which can be both lengthy and unpredictable. Argo has made markets in thousands of bankruptcy cases over the last 27+ years, including various Canadian insolvencies such as Target Canada, Gandi Innovations and Twin Butte. Additionally, Argo has invested in other crypto-currency exchange bankruptcies, including Mt.Gox. Our efforts in the Mt. Gox case were highlighted in various publications including CoinDesk and the Financial Times.
We are encouraging creditors involved in the QuadrigaCX case to reach out to Argo Partners to get a current valuation of their claim. In order to better understand how we are pricing these claims it may be useful to understand a few of the underlying facts of the case. Various reports released by the bankruptcy Monitor & Trustee (which can be found here)establish that the estate has recovered approximately CAD$33 million dollars to date, with additional assets to be received by settlement with Mr. Cotton’s estate, valued at approximately CAD$12 million. The current estimate of creditor claims is CAD$214.6 million. What remains unknown at this point is how long this case will take to be fully administered, what the size of the claims pool will ultimately be, and how much in legal and professional fees will be incurred through the bankruptcy process given the complex nature of the case. As an example, the most recent fee applications filed by these professionals was approximately CAD$1.6 million. In addition, several disputes related to the bankruptcy still need to be resolved, most notably whether or not the Canadian Revenue Agency will be awarded a claim in the case.
If you are interested in receiving a price quote for your claim feel free to fill out the form to the right or feel free to call one of our traders at (212) 643-5442. We look forward to hearing from you.