Cayman Clawback Orders Against Weavering Investors Upheld

In November 2016 the Cayman Islands Court of Appeal ("CICA") rejected Skandinaviska Enskilda Banken AB's (Publ) ("SEB") appeal against Mr Justice Clifford's decision to order that redemption proceeds of approximately US$8 million (the "Redemption Payment") should be repaid to the liquidation estate of Weavering Macro Fixed Income Fund Limited ("Weavering").

A copy of our article on the first instance Grand Court's decision can be found here.

Weavering was placed into liquidation in March 2009 when it was discovered that its investment manager, Magnus Peterson, had masked large losses suffered through options trading with worthless swap transactions entered into with affiliated counterparties. Shortly before the liquidation commenced, Mr Peterson directed that redemption proceeds of approximately US$8 million be paid to SEB leaving redemption payments to other creditors unsatisfied.