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.
The business and operations of all funds were greatly intermingled, with the potential for conflicts with the Canadian receiver in respect of the rights and claims relating to certain assets.
KRyS Global and the Canadian receiver entered into a cooperation agreement (“Protocol Agreement”) to share information and to work collaboratively to investigate the affairs of the group and realise assets (on a pro rata basis) for the benefit of all creditors.
The combined powers of the liquidator and receiver facilitated greater access to relevant documents and records, which enabled a wide ranging investigation, including asset tracing over a three year period across four jurisdictions.
The liquidator and receiver recovered substantial assets and entered into a settlement agreement for a seven figure sum, paid to the estate by the fund’s principal.
By entering the Protocol Agreement, the liquidators and receiver were able to share information and coordinate required tasks to facilitate asset recoveries and negotiate the settlement, thus minimising costs and maximising the returns to creditors.