Dear Valued Investors and Community Members,
I am writing to provide more details concerning the investments you have made in the ConsolFreight Series 4 pool(ConsolFreight Series 4 DROP or TIN Tokens). It is with regret that I must inform you that there is a significant risk of total or partial loss of funds related to the amounts owed to us by Hanhwa AUS Pty Ltd and Hanwha New Zealand Pty Ltd. Both entities, being significant clients, have faced legal complications which have in turn adversely affected their operational capabilities and, by extension, our shared business interests.
Since September 2021, Hanhwa AUS Pty Ltd and Hanhwa New Zealand Pty Ltd have utilized our trade finance facility for their business activities. We successfully completed transactions totaling over US$20,000,000.- The current market situation involving entities like Celsius, BlockFi, 3Arrows, FTX and liquidity contractions on M2 has contributed to challenging conditions. These factors have collectively led to a scenario where many investors, including those associated with Consolfreight´s pool, have been withdrawing funds. Consequently, this heightened demand for liquidity has created a situation of increased concentration of ConsolFreight ́s facilities within Hanhwa AUS Pty Ltd, exacerbating the potential risks associated with their legal complications and operational limitations.
Regrettably, Hanwha AUS Pty Ltd informed us that, due to an intellectual property dispute brought by a competitor, the Australian Supreme Court has frozen all pending deliveries to their ultimate debtors. As a result, a liquidator was appointed to unwind Hanwha AUS Pty Ltd’s activities, putting ConsolFreight’s inventory and security interest at risk.
- The ConsolFreight Series 4 pool has an total exposure of DAI 1,792,471.00 to the borrowers Hanwha Australia and Hanwha New Zealand.
ConsolFreight participates as a Junior (TIN token holder) investor to protect the Senior investors (DROP token holders) holding more than 54% of the TIN tokens with an amount of DAI 387,878.97.
Please rest assured that we are taking this situation very seriously and are actively working to address the challenges. ConsolFreight has engaged an Australian legal counsel and is working swiftly and diligently to activate recovery efforts. Our top priority is to protect your investments and to ensure that we navigate this situation responsibly and transparently.
We will provide prompt updates as more information becomes available. In the meantime, please address any inquiries or questions to firstname.lastname@example.org. We are committed to responding to all inquiries promptly and providing the information and support you need during this time.
We understand the concerns and uncertainties that you may have. Please know that we value your trust and support and are doing everything in our power to safeguard your interests and the future of ConsolFreight.
Thank you for your understanding and patience during this challenging time.
CEO of ConsolFreight LLC