The Debtors faced disputed tax claims of over $120 million made by the Commonwealth of Northern Mariana Islands (a Commonwealth of the United States) in relation to default judgments obtained against them.
Enforcement of such default judgments had commenced and the Debtors were facing a protracted and expensive legal battle, with the risk that their assets located in various jurisdictions would be seized to meet the tax liability.
KRyS Global was appointed to act as agent for the Cayman Islands trustee in bankruptcy over the estate of the Debtors personally, and also as liquidators of the Debtors’ wholly owned companies. The appointments allowed KRyS Global to protect the assets of the Debtors’ estate in the first instance, and to formulate and execute a strategy to settle or otherwise resolve the disputed default judgments against the Debtors.
KRyS Global worked with counsel in multiple jurisdictions to address the default judgments and related international freezing orders, in order to preserve and realise the Debtors’ assets around the world.
The liquidators also obtained Chapter 15 protection in the United States and progressed a strategy in relation to the default judgments, which resulted in a successful settlement of the disputed judgments.
The bankruptcy appointment over the personal estate of the Debtors was one of only a few of its kind in the history of the Cayman Islands (it was subsequently reversed on appeal).
KRyS Global used its expertise to protect the Debtor’s assets and progress a strategy in the United States to put the Debtors in a position to settle the default judgments for pennies on the dollar in a relatively short period of time.