SPhinX Group of Companies

$500mm in assets realized including $100mm+ through litigation

Issue:

KRyS Global was appointed liquidator over a group of 22 Cayman Islands hedge funds, established to replicate the Standard & Poor’s hedge fund index. SPhinX held assets in the United States in excess of $500 million, together with potential causes of action against various service providers. SphinX was also a party to an appeal of a $300m+ preference settlement negotiated prior to KRyS Global’s appointment.

Resolution:

Pursuant to the terms of its appointment, KRyS Global pursued and achieved recognition of the liquidation pursuant to Chapter 15 of the United States Bankruptcy Code. The application for recognition was the first ever opposed application under Chapter 15 reported.

Value Added:

As a result of obtaining Chapter 15 recognition, KRyS Global was able to successfully recover assets in excess of $500 million. Temporary stay of the preference settlement was achieved followed by a negotiated settlement with the US bankruptcy trustee

Carried out extensive Rule 2004 discovery and initiated third-party litigation in the United States.  Over $100 million was recovered through the US litigation.