Alerts

Cayman Hedge Funds Liquidators' Request for Chapter 15 Protection Denied by Bankruptcy Court

September 19, 2007

A motion by liquidators of two Cayman Islands hedge funds (the "Funds") for Chapter 15 protection of the Funds' assets in the U.S. has been denied by the United States Bankruptcy Court for the Southern District of New York. See 2007 Bankr. LEXIS 2949, *26 (Bankr. S.D.N.Y. Aug. 30 , 2007). The Funds were being liquidated in the Cayman Islands, but the bankruptcy court held that they were not eligible for Chapter 15 relief under the U.S. Bankruptcy Code (the "Code") because the liquidations were not pending in a country where the Funds had their "center of main interests" or an "establishment" for the conduct of business.