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Author Topic: Closure of LTC-ATF.  (Read 782 times)
Deprived
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September 23, 2013, 09:09:29 AM
 #1

In view of the imminent closure of BTC-TC and LTC-Global, LTC-ATF will be closing its doors.  In theory we could move to another exchange - but there's nowhere which supports securities denominated in LTC so a major restructure would be needed with a massive change to the contract.

The following will happen today, assuming the exchanges are up and the necessary functionality works:

1.  All bonds will be recalled at face value.  The contracts are explicit that redemption is at face value in the event that LTC-ATF closes.
2.  I will buy out all LTC-ATF shares at the NAV/U as of yesterday.  The adjusted NAV/U (i.e. post management fee) was 0.69148904 LTC per share.

This is an expedited version of the closure procedure defined in the contract.  If I were to strictly follow the contract then bonds would be paid out now (once I was sure all funds were going to be accessible) then LTC-ATF investors would get back cash slowly as shares were sold.  Some of the investments we hold are NOT going to sell for full value - e.g. the 500 LTCI we picked up a day or 2 ago to flip (which will lose a load of value because of holdings LTC-GLobal shares which obviously aren't going to be worth a lot).  There would also be signficant delays realising some assets - e.g. the BMF shares where I can't sell them back for nearly 2 months.

As maximum losses are under 100 BTC I've decided I'll just eat whatever losses there are myself and save my self the hassle of sending small bits out as we sell stuff - and then having to send out to lots of people directly after October.  I'd hope all investors would appreciate that this isn't something I was obliged to do, will definitely cost me some BTC (probably only 20-25 BTC unless usagi defaults on the BMF deal) and is better for investors than if I stuck rigidly to the contract.

Those of you who invested at the start will have made very slightly under 900% profit denominated in LTC, 5550% denominated in BTC and something with even more digits if you measure it in USD.  Thanks for your support - and hope you're happy with the return you received for putting your trust in me.  For those who invested more recently, buying at well above NAV/U, I can only apologise for your losses.

DMS will be dealt with seperately in its own thread.

For the BBET and MPOE pass-throughs, for now I'll fill any asks where I can sell at that price into orders on MPEx.  Down the line I'd be aiming to do a forced buyback before LTC-Global gos offline at whatever price I can sell the underlying at.  I'll address those in more detail once I've got the easy ones (bonds and LTC-ATF itself) out of the way.
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September 23, 2013, 10:17:15 AM
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Bonds should be paid off within a few hours - transfers in are on their way for both bond issues.

LTC-ATF itself will probably NOT get fully paid out today - just realised I'll hit the 10K LTC per day limit on BTC-E.  I should be able to do a partial payment today then the remainder tomorrow - will have to convert more BTC into LTC to do it of course.  I'll take whatever losses come on the exchanging myself.

We had ~10.5K LTC on LTC-Global but needed just over 12.5K to pay off the bonds.  Have sent 5k over from BTC-E and will send rest of our balance tehre after converting the BTC there.  Will then work out what more we need and exchange some of my BTC into LTC to cover the rest - but that will take us slightly over the 10K/day limit so the second batch won't come in until tomorrow (I'm not going to risk messing around with multiple accounts and then getting them all locked).  Think I have 1K or so LTC in my personal account on LTC-Global as well, so we may not be too far short.
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September 23, 2013, 10:19:39 AM
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LTC in just landed.

12827.09075000 LTC were paid out as full and final settlement on the LTC-ATF.B1 bonds.  Details of the exchange-rate used were posted on LTC-Global.
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September 23, 2013, 10:51:52 AM
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160 BTC dividended out on BTC-TC in full and final settlement for LTC-ATF.B2.

I'd forgotten DMS had 90-odd BTC worth of LTC-ATF.B1.  By using the LTC that DMS received I can settle LTC-ATF shortly (just waiting on a transfer in to land from BTC-E then can make final payment on that).  Obviously DMS are getting full payment for their LTC-ATF.B1 in BTC - saving DMS the costs of exchanging 4-5k of LTC into BTC and me the hassle of shuffling funds in the opposite direction.

Looks like everyone should be settled up for those within the next 10-20 minutes - just DMS and the pass-throughs to sort out then.
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September 23, 2013, 11:17:52 AM
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A dividend of 0.69148904 LTC per share has been submitted for immediate processing in full and final settlement in respect of LTC-ATF's closure.  I returned my own shares to the fund first - so the total paid is under half the NAV that the fund had at closure.

That payment represents the adjusted NAV/U as of late yesterday evening when I locked the spreadsheet ready for this week's report.  I haven't attempted to mark things down because of the collapse in value of them today.  I'd been intending to do a much longer report than usual to celebrate the fund's 1 year anniversary.  We never quite reached it (the anniversary is still 3 days away).

It's been fun - and profitable - and who knows, maybe I'll start a new fund somewhere else in the future.
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September 23, 2013, 11:43:31 AM
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Underlying assets for the BBET and MPOE pass-throughs have been sold and a dividend scheduled for immediate payment to close both out.  It was such a tiny amount that there was no point in dragging it out.  I couldn't sell all BBET without dropping the price a lot so have last ones myself for now.

Will leave the topic open in case anyone has any questions or spots an error in my math - but as far as I'm concerned that's everything LTC-ATF related closed down and paid out in full.
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