Our Global Investment Funds Group's experience and expertise not only encompasses the establishment of fund structures, but also extends to advising in situations when funds become distressed due to trading losses, illiquidity or other factors. In this regard, we have acted for the funds themselves, their investors (whether institutional, individuals or fund of funds), service providers and affected financial institutions.
We have been involved in all the major distressed funds cases in both the British Virgin Islands and Cayman Islands, starting with Long Term Capital and moving through to more recent cases such as Beacon Hill, SPhinX Funds/PlusFunds Group, Bayou, Philadelphia Alternative Asset Fund and CSA Absolute Fund. We pride ourselves on our ability to give immediate advice of a practical nature in a pressured, difficult and legally complex situation. With our worldwide network of offices we are able to do so in a real time scenario.
When a distressed fund's turnaround is not achievable, Walkers has the largest and most highly regarded offshore Insolvency and Corporate Recovery Group to advise the fund on the most appropriate liquidation/bankruptcy strategy to preserve or maximise investor value. Almost always such proceedings involve bankruptcy processes both in the British Virgin Islands, Cayman Islands and elsewhere, for example through Chapter 15 proceedings under the US Bankruptcy Code.