Bear Stearns Redux: Bad News For Offshore Funds

Law360, New York (June 24, 2008, 12:00 AM EDT) -- The failed bid of liquidators for two hedge funds affiliated with defunct investment firm Bear Stearns & Co. Inc. to obtain recognition of the funds’ Cayman Islands winding-up proceedings under Chapter 15 of the Bankruptcy Code was featured prominently in business headlines during the late summer and fall of 2007.

News of the July 2007 filings fueled speculation that offshore investment funds, of which it is estimated that approximately 75% are registered in the western Caribbean, would potentially utilize Chapter 15 of the Bankruptcy Code to...
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