crash2006 Posted August 7, 2007 Share Posted August 7, 2007 -- Bear Stearns Cos.' decision to liquidate two bankrupt hedge funds in the Cayman Islands instead of New York may limit creditors' and investors' ability to get their money back. While most of their assets are in New York, the funds filed for bankruptcy protection July 31 in a court in the Caymans, where they are incorporated. The bank also used a 2005 bankruptcy law to ask a U.S. judge in Manhattan to block all lawsuits against the funds and protect their U.S. assets during the Caymans proceedings. horrible isnt it, first they suspend the funds to investors now this. http://www.bloomberg.com/apps/news?pid=206...k0&refer=us Quote Link to comment Share on other sites More sharing options...
yellerkat Posted August 7, 2007 Share Posted August 7, 2007 I'm shocked. Who would've thought it? Quote Link to comment Share on other sites More sharing options...
South Lorne Posted August 7, 2007 Share Posted August 7, 2007 horrible isnt it, first they suspend the funds to investors now this.http://www.bloomberg.com/apps/news?pid=206...k0&refer=us ....I would suggest clever lawyers and even the tax authorities will be able to pursue them..... Quote Link to comment Share on other sites More sharing options...
sossij Posted August 7, 2007 Share Posted August 7, 2007 horrible isnt it, first they suspend the funds to investors now this.http://www.bloomberg.com/apps/news?pid=206...k0&refer=us Same old story with these investment types.... when they can't make out like bandits they make off like bandits. Quote Link to comment Share on other sites More sharing options...
Jason Posted August 7, 2007 Share Posted August 7, 2007 This just makes it more risky to put your money with hedge funds, so you would demand a higher return, i.e. more credit tightening! Quote Link to comment Share on other sites More sharing options...
dude wheres my house Posted August 7, 2007 Share Posted August 7, 2007 total scum If they get away with this they should nt be allowed to sell another thing in the host country under the parent name. That is just taking the pi$$ Quote Link to comment Share on other sites More sharing options...
Solvent Celt Posted August 7, 2007 Share Posted August 7, 2007 ....I would suggest clever lawyers and even the tax authorities will be able to pursue them..... For what? If the company is registered in the caymans then it makes sense for it to be wound up there. You would however expect any creditors meetings to be held at a locale convenient to the creditors. Are there any specific US laws that would prevent this and ring fence any assets held in US jurisdiction? I know Switzerland has such laws. Quote Link to comment Share on other sites More sharing options...
Solvent Celt Posted August 7, 2007 Share Posted August 7, 2007 This just makes it more risky to put your money with hedge funds, so you would demand a higher return, i.e. more credit tightening! Particularly funds registered in dodgy offshore places? If a business is registered in such a place but does most of it's business in another locale ask yourself why. Quote Link to comment Share on other sites More sharing options...
Guest Shedfish Posted August 7, 2007 Share Posted August 7, 2007 i wonder what the effect of this will be on risk appetite? Quote Link to comment Share on other sites More sharing options...
South Lorne Posted August 7, 2007 Share Posted August 7, 2007 For what?If the company is registered in the caymans then it makes sense for it to be wound up there. You would however expect any creditors meetings to be held at a locale convenient to the creditors. Are there any specific US laws that would prevent this and ring fence any assets held in US jurisdiction? I know Switzerland has such laws. ...by going for the parent companies....the US is much better at this sort of thing than we are... Quote Link to comment Share on other sites More sharing options...
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