U.S. Won't Rubber Stamp Hedge Funds Under Ch. 15

Law360, New York (September 6, 2007, 12:00 AM EDT) -- Bear Stearns & Co., Inc., the fifth largest investment firm in the U.S., recently failed in a bid to obtain recognition under chapter 15 of the Bankruptcy Code of winding-up proceedings commenced in the Cayman Islands at the end of July for two of the firm’s hedge funds that were casualties of the sub-prime mortgage meltdown.

News of the filings in the Caymans led to speculation that the precedent would encourage other failed hedge funds to liquidate in the Caymans, where judges are perceived as favoring...
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