Fenchurch Legal is the London-based parent company behind the Special Purpose Vehicles (SPVs) that back each ALFI token. Each SPV issues its own loan notes, legally separated from Fenchurch Legal's parent company, that are tokenised.
One of Fenchurch Legal's lenders — a senior creditor — has entered into a legal dispute with the firm. This is a Fenchurch Legal parent company matter, not something that originates with the SPV or the ALFI tokens, but the investment committee (IC) and trustees overseeing ALFI felt it was prudent to act pre-emptively.
Rather than wait to see how that situation unfolds, they made the call to redeem the tokens early. The reasoning was straightforward: if there's any risk of knock-on implications reaching client capital, remove that exposure immediately.
While not an ideal outcome, proactive and conservative decisions like this is exactly how the IC and trustees are meant to operate — and it means your capital is protected.
All customers who were invested in ALFI, received their full redemption amount, including 15 days' accrued interest, which can be reinvested, held for an upcoming opportunity, or withdrawn.