2nd Circ. Lets Madoff Feeder Fund Deflect Suit Amid Ch. 15

Law360, Chicago (April 16, 2013, 8:39 PM EDT) -- The Second Circuit on Tuesday upheld U.S. recognition of Bernard Madoff feeder fund Fairfield Sentry Ltd.’s Caribbean bankruptcy, quashing an investor’s bid to circumvent Chapter 15 protections and sue the fund.

The 32-page opinion, penned by Chief Judge Dennis Jacobs, is the first in the Second Circuit to address Chapter 15 of the Bankruptcy Code, which allows foreign debtors to seek refuge from U.S. creditors and lawsuits. The appeals court agreed with two lower courts that Fairfield’s “center of main interests” was in the British Virgin...
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