Sunday, 26 June 2016
Last updated 2 days ago
Feb 28 2012 | 5:33am ET
It's the end of the road for 3 Degrees Asset Management.
The Monetary Authority of Singapore will begin to work with the doomed hedge fund on the withdrawal of its exempt fund manager status, according to Bloomberg News. The regulator last year ordered 3 Degrees to close and last week defeated the hedge fund's appeal of that order.
MAS said it would work with 3 Degrees on the next steps for the withdrawal.
The regulator last year found 3 Degrees to have improperly channeled money into a company controlled by founder Mohammed Ibrahim. MAS began its investigation after 3 Degrees sued Agus Anwar to recover at least US$40 million in debt. Anwar then accused Ibrahim of diverting US$6.7 million to 3 Degrees. What's more, 3 Degrees' former lawyer, who has been sued by the hedge fund, told MAS that the two loans in question were connected and that Ibrahim wanted no paper trail for them.
3 Degrees said it had done nothing "illegal or improper" in structuring the loan from one of its funds.
MAS originally ordered 3 Degrees to close its doors on Nov. 9, but the hedge fund asked the Singapore High Court to overturn that decision. The court declined to do so, accepting MAS' argument that closing the US$215 million firm would send a "strong message of deterrence."