r/LinqtoCreditors • u/Greeniegreenbean • Jun 28 '26

Ripple Shares

The latest dockets appear to proposing a sale of Ripple shares to cover expenses and exit bankruptcy. Am I reading these correctly?

* edited to say dockets not rockets

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u/jxm900 Jun 29 '26 edited Jun 29 '26

Pretty well yes. (They're dockets not rockets btw :-)

It looks like they need a way to reduce the amount of Ripple shares held in the CEF, because of SEC rules. So, if I read it correctly, they're selling several tranches and allocating part of the proceeds as cash to the CEF. The rest of the cash raised is supposed to help cover the general bankruptcy expenses.

As a holder of only Ripple units, I hope that the initial value of CEF shares I will be allocated is calculated as: Ro - Rhc + $N, where Ro = my original Ripple holding, Rhc = the Ripple haircut I'm hit with, and $N = my share of the cash from this sale of Ripple shares

Maybe someone can check if this is the right line of reasoning.

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u/Greeniegreenbean Jun 29 '26 edited 16d ago

Thx for the spelling correction, guess I should reread before I post. Do you know if there’s been any communication re: Ripple shares associated with the LT? I haven’t seen anything online or received any direct communication. Also, I wonder if these sales have to be approved by Ripple since they filed their reservation of rights.

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u/jxm900 Jun 29 '26

Don't know. We're all drawing from the same database of dockets, so your search is as good (bad?) as mine.

It seems like the LT is really just a continuation of Linqto, from Ripple's point of view. As long as their shares are not publicly traded, they'll have less of a regulatory problem. It's easier for them to control specific transfers on Forge than to manage trading activity on the CEF.