Reuters- Representatives of two failed Bear Stearns Cos Inc hedge funds on Tuesday appealed a U.S. federal bankruptcy court ruling that required them to be liquidated in U.S. courts and not in theCayman Islands, as the fund’s directors prefer.<\/p>\n
Holding the proceedings in the Cayman Islands, the famed tax shelter, could have shielded the funds’ assets from some U.S. creditors and cut down on press scrutiny.<\/p>\n
Simon Lovell Clayton Whicker and Kristen Beighton, who work for KPMG, the fund’s liquidators, filed an appeal of a U.S. Bankruptcy Court ruling handed down Aug. 30 in Manhattan and amended on Sept. 5.<\/p>\n
Bear Stearns spokesman Russell Sherman declined comment. Officials from KPMG were not immediately available to comment.<\/p>\n
<\/p>\n
<\/p>\n
Bear Stearns Asset Management operated the two funds — the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund — that had invested heavily in collateralized debt obligations (CDOs) backed by subprime mortgages.<\/p>\n