Some offshore analysts are warning that thousands of hedge funds registered in offshore tax havens probably will fold in 2009. The restructuring company Zolfo Cooper that makes such forecast is preparing for a surge of activity in offshore tax havens.
Zolfo Cooper has a presence in the offshore jurisdictions like British Virgin Islands and the Cayman Islands where many hedge fund holding companies are incorporated. By words of company’s head Simon Freakley, in the British Virgin Islands there are 10,000 hedge funds registered, and as many as 4,500 of them will close this year. He also said that in case of court procedure the provisional liquidation in the BVI or Cayman Islands is needed to be able to handle the activities that may be located in the US or Europe.