KRyS Global was appointed as liquidators over Fairfield, a BVI based fund, which had invested in the Bernard Madoff Ponzi scheme and suffered a net loss of $6 billion.
At the date of KRyS Global’s appointment, the fund was the subject of litigation by the US Chapter 11 bankruptcy trustee for Bernard L. Madoff Investment Securities and had no unencumbered assets.
Initial inquiries determined that for any assets to be distributed to investors, a litigation driven strategy would need to be pursued.
KRyS Global negotiated and resolved the litigation with the trustee. KRyS Global subsequently pursued claw-back claims and litigation against certain service providers.
Legal proceedings were pursued in Ireland, the Netherlands, the United States (where Chapter 15 recognition had already been sought) and the BVI.
There have been leading decisions in this matter in the Privy Council and Second Circuit Court of Appeal.
As a result of the liquidators’ actions, recoveries of nearly $200 million have been collected to date.
A distribution strategy is currently being considered.