Rubrik IPO Update

The Receiver is aware that Rubrik is expected to go public on Thursday, April 25, 2024.  From the date of the IPO, the interests held by the Receivership may be subject to a lock-up period, the length and scope of which are currently unknown. The Receiver is continuing to monitor developments and will provide additional information when it is known.  In addition, the public shares or the proceeds thereof received cannot be distributed unless approved by the Court.

 

Plan of Distribution

On April 9, 2024, the Receiver filed a motion (the “Motion”) for entry of an order to establish a schedule for the Court’s consideration of the Receiver’s proposed plan of distribution (the “Plan”). While the Motion includes the Plan itself, as well as a Summary of the Plan, the Motion seeks only to establish a schedule for the Court’s consideration of the Receiver’s Plan.   If the Court approves the Motion, investors, claimants and other parties-in-interest will be given ample opportunity to provide responses to the Plan itself.  A copy of the Motion [Dkt 303, 304] and the Declaration of the Receiver in support of the Motion, which includes as exhibits the Plan and a Summary of the Plan [Dkt 305], can be accessed on the Receivership website Civil Docket Page here.

Please take notice that any opposition to the Motion must be made in writing and (i) if by a party, electronically filed with the Court; or (ii) if by a non-party, electronically mailed to the Receiver, at her e-mail address, StraightPathReceiver@otterbourg.com, or mailed to StraightPath Receivership c/o Otterbourg P.C., 230 Park Avenue, New York, NY 10169, Attention: Erik B. Weinick, Esq., in either case, so as to be received no later than April 23, 2024.

Update

On November 29, 2023, the United States Attorney’s Office (“USAO”) for the Southern District of New York announced the unsealing of an Indictment charging Michael Castillero, a/k/a Michael Alejandro, Francine Lanaia, and Brian Martinsen with, among other things, conspiracy, securities fraud, wire fraud, and investment adviser fraud in connection with their management of StraightPath Venture Partners LLC, StraightPath Management LLC, and nine related StraightPath Funds.  The USAO’s press release announcing the Indictment can be found by clicking here.  A copy of the Indictment can be found by clicking here. The prosecutor of the criminal case against Castillero, Lanaia and Martinsen is the United States Attorney for the Southern District of New York. The Receiver has no role in the criminal case against Castillero, Lanaia and Martinsen.

On January 30, 2024, the Receiver filed with the Court the Receiver's Seventh Quarterly Status Report to the Court (the "Seventh Quarterly Report"). A copy of the Seventh Quarterly Report can be found by clicking here.

On January 6, 2023, the Receiver filed with the Court an Interim Status Report Concerning Preliminary Findings on Commingling and Share Shortfall (the "Interim Report"). A copy of the Interim Report can be found by clicking here.

Motion for Use of Escrow Funds

On March 13, 2024, the Court approved the Receiver’s motion (the “Escrow Motion”) for entry of an order authorizing her use of Escrow Funds (as defined in the Escrow Motion) to purchase equity interests in pre-IPO companies to cover the shortfall in equity interests held by the Receivership Entities (the “Shortfall”), and establishing a procedure therefor. The Receiver is conducting necessary due diligence to determine which, if any, such Pre-IPO Shares she will seek to acquire.   A copy of the Escrow Motion and the Order approving the Escrow Motion can be found on the Receivership website Civil Docket Page here at docket items 228-232, and 297.  

Tax Information

In September 2023, the Receiver issued amended 2021 Schedule K-1s and 2022 Schedule K-1s.   Please visit the Frequently Asked Questions page for more information about the 2022 Schedule K-1s.

Procedures for Resolution of Claims and Interests and Bar Dates for Claims

On March 30, 2023, the Court entered an Order approving the Receiver’s Motion for Resolution of Claims and Interests and Establishing Bar Dates for Claims (the “Resolution Procedures”).  Please visit the Claims and Interests page here for more information. 

Receivership Background

On June 14, 2022, the Hon. Melanie L. Cyganowski (Ret.) (the “Receiver”), former Chief Bankruptcy Judge of the United States Bankruptcy Court for the Eastern District of New York, and Chair of the Restructuring and Bankruptcy Department of Otterbourg P.C., was appointed to serve as the Court-Appointed Receiver pursuant to an Order (the “Receivership Order”) of the Honorable Lewis A. Kaplan of the United States District Court for the Southern District of New York.

Pursuant to the Receivership Order, the Receiver was appointed as Receiver for the estate (the “Receivership Estate”) of SP Ventures Fund LLC, SP Ventures Fund 2 LLC, SP Ventures Fund 3 LLC, SP Ventures Fund 4 LLC, SP Ventures Fund 5 LLC, SP Ventures Fund 6 LLC, SP Ventures Fund 7 LLC, SP Ventures Fund 8 LLC, SP Ventures Fund 9 LLC (collectively, the “SP Funds”); StraightPath Venture Partners LLC (the “SP Fund Manager”); and StraightPath Management LLC (the “SP Advisor” and collectively with the SP Funds and the SP Fund Manager, the “Receivership Entities”).

Under the terms of the Receiver Order, the Receiver, among other things, has the responsibility and duty (i) to use reasonable efforts to determine the nature, location, and value of all assets and property interests of the Receivership Entities; (ii) take custody, control, and possession of all property of the Receivership Entities; (iii) to sue for and collect, recover, receive, and take into possession from third parties all property of the Receivership Entities and records relevant thereto; (iv) to manage, control, operate, and maintain the Receivership Estate; (v) to engage and employ persons in the Receiver’s discretion to assist the Receiver in carrying out the Receiver’s duties and responsibilities; (vi) to pursue, resist and defend all suits, actions, claims and demands which may be pending or which may be brought by or asserted against the Receivership Estate; (vii) to make necessary or required filings in the counties, states, and/or jurisdictions in which the property of the Receivership Entities is located in order to secure these assets; and (viii) to propose a liquidation plan and distribution plan to the Court upon motion.

A copy of the complaint filed by the Securities and Exchange Commission on May 13, 2022 can be found HERE.

A copy of the Receivership Order filed on June 14, 2022 can be found HERE.

You may contact a representative of the Receiver by sending an email to straightpathreceiver@otterbourg.com.