Cay Compass -A US bankruptcy court ruling last week concerning two failed hedge funds incorporated in the Cayman Islands could have implications for other troubled hedge funds incorporated off\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153shore.<\/p>\n
The court ruled the two hedge funds could not protect themselves from claims by US creditors by liquidating in the Cayman Islands.<\/p>\n
But according to finance experts on Grand Cayman, the ruling will not make the Cayman Islands any less attractive as an investment location for fund managers.<\/p>\n
The two Bear Stearns\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 funds at the center of the proceedings \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 estimated to have had more than US$1.5 billion of capital as recently as March \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 filed for bankruptcy on 31 July after suffering large losses on the US subprime mortgage market.<\/p>\n
Provisional liquidators now think recoveries for the two funds will amount to US$25 million and US$50 million respectively.<\/p>\n