KRyS Global was appointed liquidator of Eldon for the purpose of investigating what had happened to certain funds paid to the company.
Initially, KRyS Global received no co-operation from the company directors or service providers, had no access to company books and records, and no company assets to fund the liquidation.
A number of the company’s directors and service providers were resident in Israel, therefore, many of the powers granted under the BVI Insolvency Act 2003 had no effect due to extra-territorial limitations.
KRyS Global obtained the assistance of the BVI court, which issued a letter of request (“letter rogatory”) asking the Israeli court to allow KRyS Global to use the same powers that are available to court-appointed liquidators in BVI to examine the parties in Israel.
The Israeli court granted assistance to the BVI court, allowing KRyS Global to gain access to bank statements and other documents relevant to its investigation and to examine the directors and service providers.
This was the first time that the Israeli court had agreed to assist with a letter of request, so the strategy was groundbreaking within that jurisdiction.