The Joint Liquidators from KryS Global, a law firm working from four jurisdictions, including the British Virgin Islands, Cayman Islands, Bahamas and Bermuda, announced an important decision in the procedure of liquidation of the Fairfield Funds – Fairfield Sentry Ltd., Fairfield Sigma Ltd. and Fairfield Lambda Ltd.
According to this decision, the U.S. District Judge for the Southern District of New York, affirmed the decision taken in July 2010, recognizing Fairfield Sentry’s liquidation proceeding in the jurisdiction of the British Virgin Islands, as a “foreign main proceeding” under Chapter 15 of the U.S. Bankruptcy Code, which entitled the Joint Liquidators to cooperation and assistance of US courts, in aid of their recovery efforts on behalf of Sentry’s stakeholders.
The Bankruptcy Court’s decision was challenged by parties to a purported derivative action alleged to have been brought in the name of Fairfield Sentry. The apellants argued that granting recognition of the BVI liquidation proceedings was contrary to U.S. public policy due to a sealing order entered in by the court overseeing the BVI liquidation proceedings to protect information contained in the court file that includes litigation strategy or is otherwise confidential or privileged. The District Court denied the appeal.
Kenneth Krys, a licensed insolvency practitioner in the BVI and one of the Joint Liquidators of the Fairfield Funds, said of the District Court’s decision: “We are very pleased with the District Court’s affirmance of the Bankruptcy Court’s recognition order. This important decision provides the Joint Liquidators with continued access to and assistance from United States courts in fulfilling their duties to obtain recoveries for Sentry’s stakeholders in this complex, international liquidation.”
Fairfield Sentry Limited and its affiliated funds Fairfield Sigma Limited and Fairfield Lambda Limited were the largest ‘feeder’ funds into the notorious Madoff’s Ponzi Scheme.
KryS Global specializes in providing corporate recovery, fraud investigation and forensic accounting, money laundering investigations, business advisory services, consulting and regulatory compliance services.
