The estate of Three Arrows Capital (3AC) has filed documents urging a New York court to find hedge fund manager Kyle Davies in contempt of court for failing to respond to a subpoena for information about the company’s collapse. The filing suggests a fine of $10,000 per day for wilfully ignoring previous requests, citing Davies’ lavish lifestyle and handsome profits from running the company. Judge Martin Glenn had previously ordered Davies to comply with the subpoena by April 13, but 3AC’s liquidators say he failed to comply or respond in any way.
It cannot be clearer that the Court can—and should—exercise personal jurisdiction over Davies, hold him in willful contempt of court, and impose sanctions, the filing said. The filing suggests that the significant daily fine is fair and likely meaningful in persuading Davies to respond, citing a recent interview with the New York Times in which Davies boasted of investing in a superyacht and potentially buying a private island. A hearing will be held on the U.S. contempt request on Aug. 8.