CROSS-BORDER INSOLVENCY LAW – JURISDICTION TO DETERMINE CLAW-BACK CLAIMS – FOREIGN TRUSTEE GRANTED RECOGNITION IN THE CAYMAN ISLANDS – ABILITY OF THE CAYMAN ISLANDS COURTS TO ASSIST IN AID OF FOREIGN BANKRUPTCY PROCEEDINGS
This case concerned the latest Cayman chapter of the Madoff litigation. Bernard L. Madoff Investment Securities LLC’s (“BLMIS”) only connection with the Cayman Islands is that several Cayman domiciled investment funds, including Primeo Fund (“Primeo”), placed funds with it for investment. Primeo’s success was highly dependent on BLMIS’ investment performance, and as such the fund suspended the calculation of its net asset value and suspended subscriptions and redemptions the very day after the arrest of Bernard Madoff for fraud. Primeo entered voluntary winding up very shortly thereafter and joint official liquidators were appointed.