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ARTICLE · 10 FEBRUARY 2008

Liquid Assets?

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Jeremy Walton and Andrew Bolton outline the liquidation strategies available in relation to Cayman Islands funds.

Cayman IslandsInsolvency/Bankruptcy/Re-Structuring
Andrew Bolton
Andrew Bolton
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Jeremy Walton and Andrew Bolton outline the liquidation strategies available in relation to Cayman Islands funds

Legal manoeuvrings in the aftermath of recent fund collapses such as Bear Stearns, Basis Yield Alpha and Absolute Capital have generated much controversy and debate. With over 75% of the world's hedge funds domiciled in the Cayman Islands, and an increasing number of them in distress, it pays to understand the options that Cayman law offers to interested parties when NAVs start to plummet. Depending on the characteristics of a fund and the reasons for its difficulties, successful liquidation strategies can be developed from an informed choice between the various options outlined below.

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