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 preference settlement negotiated prior to KRyS Global’s appointment.
Pursuant to the terms of its appointment, KRyS Global pursued recognition of the liquidation pursuant to Chapter 15 of the United States Bankruptcy Code. The application for recognition was the first reported opposed application under Chapter 15.
KRyS Global was ultimately successful in obtaining foreign non-main recognition.
As a result of obtaining Chapter 15 recognition, KRyS Global was able to successfully recover assets in excess of $500 million.
Extensive third-party litigation was pursued and some discovery of company records was obtained from the United States-based service providers.
Nearly $100 million has been collected to date from the US litigation.