Bermuda Receivers Recognized in Cayman Islands
As many offshore professionals will be aware, Segregated Portfolio Companies originated in Guernsey (Channel Islands) and Delaware (USA), but two jurisdictions in particular, Bermuda and the Cayman Islands, have had significant success in developing these entities in the hedge fund space. At a hearing in the Grand Court of the Cayman Islands on 11 December 2017, Chief Justice Smellie recognized the court appointed Receivers of a Bermuda segregated account operating as a hedge fund (Mathew Clingerman and Christopher Smith of KRyS Global) granting the Receivers all the functions and powers of the directors and managers of the segregated accounts company in respect of the business and assets of the segregated account. Recognition of the aforementioned powers and functions of the Receivers, represented by Solomon Harris, will enable them to collect information and identify potential assets located in the Cayman Islands.
The Order made by the Chief Justice is believed to be the first time that the Grand Court has recognized receivers of a foreign segregated account.
Mathew Clingerman, one of the Joint Receivers, said “The recognition is a positive development which provides us with powers to investigate the affairs of the fund, collect information and to identify potential assets for the benefit of creditors and investors.”