A proven track record is the best way to demonstrate our strength and depth of expertise. Below are examples of our team’s recent appointments.
We were engaged by the Cayman Islands Monetary Authority (“CIMA”) to serve as independent examiner and assist in the investigation and analysis of a licensed bank and broker dealer. CIMA required us to conduct its analysis under a demanding and limited timetable. The investigation consisted of a review of trading activity and related wire transfer activity of specified entities. Specifically, we were to look for evidence of activity that was indicative of fraud and the manipulation of markets.
Our team were able to respond rapidly and perform the required analysis in the timeframe set by CIMA. The analysis included a review of the bank’s trading and transfer activity for specified entities, which resulted in an analysis of over 60,000 transactions. The forensic technology enabled rapid data capture and analysis to support its findings.
We were appointed as liquidators over Fairfield, a BVI based fund, which had invested in the Bernard Madoff Ponzi scheme and suffered a net loss of $6 billion.
At the time, the appointment, the fund was the subject of litigation by the US Chapter 11 bankruptcy trustee for Bernard L. Madoff Investment Securities and had no unencumbered assets. Initial inquiries determined that for any assets to be distributed to investors, a litigation driven strategy would need to be pursued.
In order to commence its litigation based recovery strategy in the United States, we needed to address the claim made by the trustee to avoid the risk of the trustee seizing liquidation recoveries in the United States (and potentially elsewhere).
A unique and highly creative settlement agreement with the trustee was entered into including an agreed sharing of litigation proceeds relating to certain defendants against whom both Fairfield and the trustee were pursuing litigation.
A financial institution was suspected by the United States Senate of being involved in money laundering, drug trafficking, and terrorist financing activities.
The local financial services regulator engaged us as an independent examiner to inspect the Cayman licensee’s compliance with the applicable anti-money laundering and counter financing of terrorism laws and regulations.
The investigation focused on whether the licensee had appropriate and sufficient anti-money laundering policies and procedures and adequate identification procedures.
Various issues arose during the inspection, which we were able to overcome and produce a comprehensive report for the regulator within the deadline imposed.
William and Patricia Millard (The Debtors)
The Debtors faced disputed tax claims of over $120 million made by the Commonwealth of Northern Mariana Islands (a Commonwealth of the USA) in relation to default judgments obtained against them.
Enforcement of such default judgments had commenced and the Debtors were facing a protracted and expensive legal battle, with the risk that their assets located in various jurisdictions would be seized to meet the tax liability.
We were appointed to act as agent for the Cayman Islands trustee in bankruptcy over the estate of the Debtors personally, and also as liquidators of the Debtors’ wholly owned companies.
We worked with counsel in multiple jurisdictions to address the default judgments and related international freezing orders, in order to preserve and realise the Debtors’ assets around the world.
The liquidators also obtained Chapter 15 protection in the United States and progressed a strategy in relation to the default judgments, which resulted in a successful settlement of the disputed judgments.
The SPHinX Group comprised 22 hedge funds which utilised segregated portfolio cells to replicate a hedge fund index for S&P, the first of its kind at the time it was established in 2002. Following the bankruptcy of Refco LLC and related companies in the United States, the SPHinX Group collapsed and we were appointed liquidators over the funds.
It was one of the first reported Chapter 15 recognition case in the United States. It was also precedent setting in the Cayman Islands as the liquidators dealt with extremely complex issues involving indemnity reserves, multi-defendant litigation in the United States, and schemes of arrangement to compromise various ranking issues and other disputes in the liquidation. Ultimately the liquidators collected over $680 million for creditors and investors, including $140 million from third party service providers.
Pentagon Capital Management
This is a UK based hedge fund manager that manages various funds in Offshore jurisdictions. Following litigation in the US and a highly publicised landmark ruling, following action by the SEC, it suffered an award in excess of $50m which was followed by a Restraining Order being issued by the US Court. We were appointed to the Company in the UK as Joint Administrators and are now managing the company and pursing a highly complex appeal in the US Courts against the earlier ruling.
Securing a Multi-Bank Banking Facility
A leading energy support services provider approached us to assist with arranging its new debt facilities due to their strategic importance and the challenging market environment.
We were able to assist their finance team with developing the right information to deliver to investors and use our detailed knowledge of bank processes to negotiate the right covenants and banking structure. The funding provided committed lines for further organic growth, as well as additional facilities to support strategic acquisitions.
The new debt package saw the company’s existing debt provider joined by four additional banking partners. In the current market, our ability to work flexibly and cost-effectively allowed the company, rather than its banking partners, to drive the financing package and deliver this efficiently.
Carlyle Capital Corporation
This is a hedge fund registered in Guernsey, listed in Amsterdam, but managed from New York & Washington. When it failed in 2008 it had assets and liabilities in excess of $21 billion and its investors had lost all of their $1 billion investment. The liquidation was run out of London working with our offices in Guernsey and Cayman and our alliance members in the US. Following 18 months of intensive investigations we commenced legal action in the US and Guernsey to seek to recover at least $1 billion in funds in order to make good the losses of the creditors and investors. The litigation was extremely complex and hard fought, and is ongoing in both Delaware and Guernsey, with subsidiary actions in New York and Washington DC. We work closely with our principal lawyers in New York, Washington and Hong Kong on this matter, along with UK, Guernsey and Delaware lawyers.
Quincy Mutual Fire Insurance Company
This thought to be the first solvent Scheme of Arrangement for a UK branch of a US corporation. The case was managed out of London. The application was approved on behalf of the US based Company for a formal order to establish the solvent scheme which related to the company’s London operations. It successfully allowed the US insurer to close down its UK business despite having written policies that would have taken 20 years to finalise without the use of the Scheme.
We as financial experts for a US-based hedge fund in their litigation against the Irish Minister for Finance. The dispute centred around the Minister’s decision to use powers granted under the Credit Institutions (Stabilisation) Act 2010 to cram down subordinated bondholders in Allied Irish Bank, whilst inverting traditional creditor hierarchy to leave shareholders intact. The report covered a number of key areas including the importance of creditor hierarchy in capital markets, precedent examples in European bank resolution (e.g. Northern Rock and Bradford & Bingley).