The Cayman Court provides further clarification as to when
redemption payments can be recovered as a voidable preference.
Introduction
In December 2015, Mr Justice Clifford QC published his reasons
for determining that certain redemption payments made by Weavering
Macro Fixed Income Fund Limited (Weavering ) to
Skandinaviska Enskilda Banken AB (Publ)
('SEB') were invalid (In the Matter of
Weavering Macro Fixed Income Fund Limited (in Liquidation)
(unreported) FSD 98/2014 – 4 December 2015).It is the first
time that a Cayman Islands court has ordered the repayment of
redemption proceeds pursuant to the voidable preference provisions
of the Companies Law.
The case follows the recent decision of the Chief Justice in
RMF Market Neutral Strategies (Master) Limited v DD
Growth Premium 2X Fund [2013] 2 CILR 361, and provides further
guidance for investors in Cayman funds as to when payments are
potentially vulnerable to clawback.
