#United States #New York #Chapter 11 #Apple Tree Partners #Cayman Court

Apple Tree Partners Provides Important Update

On July 10, 2026, a Cayman Court issued a directive regarding the ongoing restructuring of certain affiliates and portfolio companies of Apple Tree Partners (ATP). This order, publicly posted on July 13, 2026, has led to some misconceptions, prompting ATP to clarify their position and update stakeholders on their current status and operations.

ATP emphasizes that, despite the Cayman Court's ruling, no significant changes affect its entities under U.S. law. The organization, along with its portfolio companies, continues its operations as usual. Any claims suggesting a change in control at ATP under U.S. law are unequivocally false. The U.S. courts have not acknowledged the officeholders outlined in the Cayman directive; in fact, the managing director of ATP GP III Ltd., Dr. Seth Harrison, remains in charge.

Overview of Court Findings

Questions regarding the management and functioning of ATP and its affiliates will be resolved by the U.S. Bankruptcy Court in due course. The recent outcomes in the Cayman Court do not influence the prior findings of the U.S. Bankruptcy Court, nor do they affect the authority reserved by the Delaware court. This court has been a steadfast guardian of ATP's exit strategy for the fund and its portfolio companies.

Moreover, two Delaware courts have underscored that the preservation of portfolio companies and the continuation of their research and developmental activities align with the public interest and significantly benefit the bankruptcy estate. These decisions reaffirm the independent operational capabilities of ATP's portfolio companies, allowing them to pursue business transactions and partnerships as they see fit.

Continuing Operations Amid Restructuring

ATP III GP Ltd, still under the control of Dr. Harrison, remains engaged in its Chapter 11 restructuring process. Recently, the U.S. Bankruptcy Court mandated that adjustments to the boards or senior management of portfolio companies require approval from ATP III GP Ltd. This rule is a protective measure ensuring that all changes support the overall restructuring goals set forth by ATP.

As part of the ongoing restructuring efforts, ATP has proposed a funding motion to Justice Silverstein aimed at afloat the portfolio companies through 2026. ATP is optimistic that this motion will facilitate their exit from Chapter 11, allowing the companies to thrive in a supportive funding environment. The company is committed to overcoming liquidity issues, funding defaults, and other contractual problems previously reported by Rigmora, which have been the primary triggers for the ongoing litigation.

As we navigate through this challenging chapter, Apple Tree Partners reaffirms its commitment to transparency and the ongoing operations of its affiliates. The strategic objective remains clear: to ensure that ATP emerges from restructuring poised for renewed growth and enhanced operational capacity. This clarity allows stakeholders to remain informed and confident in ATP's future trajectory as the organization takes substantial steps towards recovery and sustainability.

Conclusion

In conclusion, the narrative surrounding the recent Cayman Court order and its implications has been distorted. Apple Tree Partners remains steadfast in its mission, continuing to prioritize operational integrity and stakeholder engagement throughout this restructuring phase. We encourage all parties interested in further developments to reach out directly through our official communication channels.

For ongoing updates, please refer to ATP's official communications or contact [email protected].