KRyS Global was engaged as an independent expert by counsel for a regulated financial institution that suffered substantial losses after it was forced into a court supervised insolvency process following temporary freezing orders covering more than $400 million in assets. Ultimately the court appointed liquidators advanced claims against the company’s former legal counsel alleging that they had improperly advised them in respect of the freezing orders precipitating its insolvency.
We were instructed to assess whether the regulator would have commenced insolvency procedures against the financial institution had the freezing orders been vacated or appropriately varied and to quantify the resulting damages suffered by that institution and its customers.
We produced a concise report which made clear what facts and considerations the regulator took account of in making their decision to initiate the insolvency proceeding and explained in easy to understand terms the basis for more than $75 million in damages. The matter was settled.