So Citadel Europe gets liquidated or voluntarily liquidates itself (doesn’t matter which, it’s trouble for them either way). Let’s look at a list of their recent voluntary actions. I guess you can voluntarily give up your car you can’t afford and save face rather than have it repossessed huh?

CategoriesGamestop, GME

January 25, 2021

  • Citadel, Point72 back Melvin with $2.75 Billion

This is a good starting point yes? No matter what they paid the media to say, I do not believe Citadel redeemed all of this money back over the next year and a half. In bankruptcy there are legalities between picking and choosing which debts to pay back. “Let me pay my boy Ken back and let all my creditors and investors just hold our bags.”

Your parents, siblings, other relatives, and close friends (Kenneth C. Griffin) are “insiders” in bankruptcy law. 11 U.S.C. § 101(31). In other words, the court knows that you’re likely to choose to repay them over other creditors. So, they’ll look very carefully at any payments you make to friends and family before filing. Payments to insiders are called preference payments and they’re prohibited by bankruptcy law.

So rather than file bankruptcy, Gabe Plotkin decided to pay back his close friends in full, while all his other clients take the losses when Melvin liquidates for a loss and shuts the door. So was the $2.75 billion a 6 month bail out, loan, investment, or just a facade to kick the can? This needs to be investigated. Because Melvin lost much more in Q1 of 2022 yet was still able to pay back Kenneth C. Griffin in full while he was losing and afterwards? This will be investigated for sure, but that’s off topic.

February 18, 2021

  • Kenneth C. Griffin Lies Under Oath

https://www.youtube.com/watch?v=vJrgPNyFrLw&t=4s

March 8, 2021

  • Citadel issued $600 million in convertible bonds to raise money.

r/Superstonk - So Citadel Europe gets liquidated or voluntarily liquidates itself (doesn't matter which, it's trouble for them either way). Let's look at a list of their recent voluntary actions. I guess you can voluntarily give up your car you can't afford and save face rather than have it …

How does this graph look? Does this look promising to you guys?

Bond prices decline when interest rates rise, when the issuer experiences a negative credit event, or as market liquidity dries up.

Ouch. Notice the first Coupon Payment Date? September 9, 2022. What’s today again?

What is Coupon Date? The coupon date is the date on which the bond issuer must make a interest payment to the bondholder. For most bonds, the coupon date is every 6 months from the date of issue.

August 21, 2021

  • Citadel allegedly redeemed $500 million dollars back from Melvin

They weren’t calling on Melvin to give back $500 million because they were in good shape, Citadel was obviously trying to raise funds with their convertible bonds (which weren’t needed according to their earnings), and in trouble. How do we know Citadel wasn’t in good shape? December 7th, 2021 ↓

 

September 28, 2021

  • Kenneth C. Griffin rants on Twitter through his Citadel account about conspiracy theorists and congratulates Robinhood for their great success story.

r/Superstonk - So Citadel Europe gets liquidated or voluntarily liquidates itself (doesn't matter which, it's trouble for them either way). Let's look at a list of their recent voluntary actions. I guess you can voluntarily give up your car you can't afford and save face rather than have it …

Again, how do we know Citadel wasn’t in good shape?

December 7, 2021

  • Citadel’s Withdrawal Restrictions (December 7, 2021)

The $43 billion Citadel fund has now updated its liquidity terms for all investors, limiting quarterly without-fee withdrawals to just 6.25 percent from the previous 10 percent. This means that it would now take a client 16 quarters or four years to fully withdraw funds invested with Citadel. Under the previous regime, it would have taken 2.5 years to do so.

Why this isn’t talked about anymore is beyond me. Citadel is in trouble and this voluntary action which forced their own clients to involuntarily stay invested longer because they were obviously losing their investors at an alarming rate. This is all anyone needed to know. By the way, this was during a strong bull market when the SPY was going crazy and there would be NO REASON to limit without-fee withdrawals unless you had underlying issues that you couldn’t discuss publicly (because if institutions knew the truth, Citadel would crumble instantly).

January, 2022

  • Citadel allegedly redeemed another 500 million from their Melvin investment

My 2 cents: Gabe Plotkin knew his situation was dire and Kenneth C. Griffin had to control the narrative by making sure to stay on top of the news, for his investors sake. When they gave (if they gave) Melvin the $2.75 billion they had NO idea this would end up with 71.3 million shares DRS. Say what? They were just going to control the run up, turn off the buy buttons, FUD retail, bankrupt GME regardless, and Melvin eventually wins on it’s short bet and Citadel gets paid back with interest; all hedge funds are happy. Citadel had no idea the movement that started. But do you really believe Citadel redeemed the entire backing it just gave Melvin less than a year ago (as Melvin kept losing money)? Not likely. Much like the media wasn’t truthful when reporting all the shorts had been closed, it’s all to save face. Once retail started to DRS Melvin had no chance. Melvin was on the brink of bankruptcy and Gabe Plotkin had to report this to his clients. Melvin and Citadel worked out a plan to make sure the media reported Citadel magically got their $2 billion back. But how? Melvin Capital kept losing billions well after the January 2021 run up. This is all to protect Ken and Citadel’s image and keep his clients & investors on board. This is the guy that had a cease and desist letter sent to an airplane pilot. Think about it. Image is everything. This is why you have to sort through the bullshit paid lies about their huge June/july gains, and ask yourself why are they closing down LLPs, borrowing money, and down so much in their bonds?

January 11, 2022

This whole situation was extremely weird because when they announced this investment, most articles already included the “reddit” counter arguments. Rather than just announcing the investment, they noted that redditers were cheering this on as a sign that Citadel was in trouble. So they make these announcements and have counter arguments to things no one has said yet. However, they know the truth so they try to control the narrative and stay out in front of SuperStonk. The fact is, this wasn’t some sort of savvy business deal (much like the convertible bonds, Sequoia and Paradigm have only lost with this investment). This was Citadel clearly trying to save their company and they swindled two more investors that probably now can’t withdrawal their investments without huge fees attached to them. Yet they could withdrawal their $2 Billion they gave to Melvin less than a year later? Hmmmm.

February 24, 2022

  • It is released by the “media” that Citadel has redeemed most of it’s $2 billion dollar investment with another $500 million being redeemed by March 2022.

Melvin Capital announces May 18, 2022 that it is shutting down due to losses. Remember my two cents?

March 15, 2022

  • Citadel Faces Potential Default on Russian Tech Company

Citadel is facing potential default on convertible bonds from Russia’s Yandex NV. Yandex NV is an internet and technology company that provides an internet search engine in Russia and other international markets. Tigran Khudaverdyan has stepped down from his roles as Executive Director and Deputy CEO at Yandex. Citadel could default on convertible bonds worth billions.

Ouch.

August 18, 2022

  • Citadel Securities borrowed $600million on Thursday

Citadel Securities borrowed $600 million on Thursday to bolster its balance sheet and trading business, capitalizing on strong demand from lenders after volatile markets helped one of the biggest US equity trading houses make a banner start to 2022. The company told lenders, which include credit funds, that it planned to use the $600 million in part for additional trading capital. Citadel has sought to expand into markets outside the US and build its business with institutional traders in fixed income.

Again, this is all voluntary. Now ask yourself why a company would borrow $600 million less than a month before that first coupon payment date? Anyone else raising their eyebrows here? Citadel went from loaning money, raising money through bonds, to borrowing. I’m just a smooth brainer but this isn’t rocket science here. Follow the money.

So what better way to bolster your balance sheet and trading business by borrowing $600 million while voluntarily liquidating your LLP that had net assets of over $800 million with profits of nearly $1 billion for the year 2020. Makes sense huh?

September 9, 2022

  • We find out that on August 1, 2022, Citadel Europe LLP is being voluntarily liquidated

The LLP was formed in 2008 and as of the latest audited financial statements filed for the year ended December 31, 2020, the LLP had net assets of over $800 million. The profit for 2020 from this entity was just under $1 billion.

The principal activity of the LLP is to “provide investment management services to Citadel Advisors LLC, a related company in the US which manages the Citadel Funds.” As of September 2021, the members stated they are “satisfied with the development of the business to date and expect the current activities to continue into the future”. Less than a year later, they file for voluntary liquidation. /u/greysweatseveryday

Most of us understand that whether it be voluntarily or involuntarily, it had to be done. The alternative is what? It is done involuntarily and it’s official, they are being liquidated? If you close down Citadel Europe which was created as an expansion, obviously things aren’t going as planned. If Citadel was making so much money with their main office, let’s open another!? So what happens when the first office starts to sink? You take the funds from the other, and close it down. Pretty simple right?

September 9, 2022

  • So the $600 million in convertible bonds were issued at $99 dollars and they are now worth $91. This is at a 3.375% with September 9, 2022 being the first coupon date.

Let’s get back to these bonds and what it all means.

What is Coupon Date? The coupon date is the date on which the bond issuer must make a interest payment to the bondholder. For most bonds, the coupon date is every 6 months from the date of issue.

r/Superstonk - So Citadel Europe gets liquidated or voluntarily liquidates itself (doesn't matter which, it's trouble for them either way). Let's look at a list of their recent voluntary actions. I guess you can voluntarily give up your car you can't afford and save face rather than have it …

Tick tock.

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