Investors ordered to pay back over $8M in fund saga

| 24/12/2015 | 1 Comment

(CNS Business): In the latest legal ruling in the Weavering Macro Fixed Income Fund saga, the Grand Court of the Cayman Islands has ordered that redemption payments made to an investor of the failed Weavering Macro Fixed Income Fund prior to the commencement of its liquidation are to be repaid, lawyers involved in the case have said. The court ruled that the redemption payments constituted preferences and were invalid and over US$8.2m should be repaid.

This is the first successful attempt by liquidators of a Cayman Islands investment fund to recover redemption payments on the basis of preference over the fund’s other creditors.

Mourant Ozannes partner Shaun Folpp, who acted for the Fund’s liquidators, said, “The court’s ruling confirms that redemption payments paid to investors are not immune from recovery by liquidators, including where those investors invest in the fund as a nominee or custodian, where the payments are preferential in nature. The court’s decision reinforces the general rule that all creditors of an insolvent company ought to be treated equally.”

The proceedings, brought by the Fund’s liquidators, Ian Stokoe, David Walker and more recently Simon Conway of PwC Corporate Finance and Recovery (Cayman) Ltd, are part of wider steps currently being taken to recover assets of the fund.

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  1. Anonymous says:

    Of course the Liquidators need to be paid.

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