© Reuters. FILE PHOTO: 888 7th Ave, a building that reportedly houses Archegos Capital is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., March 29, 2021. REUTERS/Carlo Allegri
(Reuters) – Archegos Capital Management, the family office run by former Tiger Asia manager Bill Hwang, is preparing for insolvency after banks tried to recoup some of the $10 billion in losses due to its meltdown in March, the Financial Times reported. (https://on.ft.com/33eR2Gl)
Archegos has hired restructuring advisers to assess the potential legal claims from banks and to explore the winding down its operations, the report said on Wednesday, citing two people familiar with the matter.
The company declined to comment on the report.
Global banks had lost $10 billion after highly leveraged bets from the family office on media stocks like ViacomCBS (NASDAQ:) turned sour. Archegos had assets of around $10 billion but held positions worth more than $50 billion.
A number of the banks who lost money are preparing to issue “letters of demand” to Archegos, which are requests for payment before launching a legal claim, three people close to the process told FT.
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