31 March 2016

Acting for the joint liquidators of various BVI hedge funds

Carey Olsen is acting for Hadley Chilton and John Greenwood (Baker Tilly), joint liquidators of a number of BVI hedge funds, against a US Court-appointed receiver and Bahamian liquidators of certain BC Capital entities over claims in the Guernsey Royal Court regarding substantial assets held by EFG Private Bank (Channel Islands) Limited.

We have been advising on cross-border asset tracing, fraud and insolvency principles in relation to a multi-million dollar, multi-jurisdictional liquidation process. Proceedings alleging fraud were issued by the SEC and CFTC in the United States against Nikolai Battoo and others in relation to the collapse of the BC Capital group of companies.

The SEC applied to join the Guernsey interpleader proceedings, which Carey Olsen successfully opposed. Since then Carey Olsen has applied for a stay of proceedings pursuant to the principles of modified universalism, brought three successful applications for summary judgment and employed Requests for Further Information to great effect.  

This case has already seen a number of landmark judgments, including on the Royal Court of Guernsey's ability to apply principles of modified universalism, the legal test and principles to be applied when considering the recognition of a foreign office holder (Court of Appeal) and the Court's ability to grant summary judgment relief in interpleader proceedings. The judgment on modified universalism deals with complex cross-border insolvency issues and the extent to which the Guernsey Royal Court can assist foreign insolvency proceedings and remains the leading judgment in this area.

Having been successful on the substantive case, we will now be pursuing the clients' claim for costs.

The case not only demonstrates the team's strength in depth, but the ability to combine the use of existing tactics and authorities with novel concepts to obtain the best results for the clients.