KRyS Global was appointed liquidator of two hedge funds in the Cayman Islands, whilst a receiver was appointed by the Ontario Securities Commission over a related domestic fund in Canada.

Much of the information and assets necessary to effectuate the Sextant liquidation were located outside of the Cayman Islands, including securities held by a custodian in Canada, over which a freezing injunction had been granted. Litigation had also commenced in Canada against Sextant, and the liquidators required documents from service providers and third parties outside of the Cayman Islands to assist their investigation into Sextant’s affairs. Further, a property in Florida was suspected to have been purchased with funds misappropriated from Sextant.

Finding ways to gain control of this information/assets was crucial to the successful liquidation of the funds.


It was clear that KRyS Global would need to seek recognition of its appointment in Canada and the United States to effectively deal with Sextant’s assets and conduct its investigations into the affairs of the funds.

KRyS Global was successful in obtaining recognition of the liquidation in Canada under the Bankruptcy and Insolvency Act and was granted orders to (a) have the freezing injunction lifted, (b) take control of the assets, (c) impose a stay of the proceedings against the companies, and (d) require parties to deliver documents to the liquidators.

A similar order was obtained in Miami, pursuant to Chapter 15 of the United States Bankruptcy Code, to allow investigations into the source of funds for the property purchase.


KRyS Global was able to lift the freezing injunction to gain control of several million dollars of securities, and obtain access to documents, which greatly assisted its investigations into the misappropriation of millions of dollars.