20, 21, 24 and 25 November, 2008
START DATE
END DATE
27 November 2008
BNY AIS Nominees Limited et al. v. Stewardship Credit Arbitrage Fund Ltd. Supreme of Bermuda
COURT:
LAW:
JUDGE(S):
CLAIMANT'S LAWYER:
DEFENDANT'S LAWYER:
Supreme Court of Bermuda
Commercial Law
Hon. Geoffrey R. Bell
Mr. Alex Potts & Ms. Lakilah Spencer (Conyers Dill & Pearman)
Mr. Andrew Martin & Mr. Saul Froomkin Q.C. (Mello, Jones & Martin)
FACTS OF THE CASE:
Investment funds managed by the Gottex Group sought a winding-up order against Stewardship Credit Arbitrage Fund Ltd. (the ?Fund?) due to alleged insolvency. The Plaintiffs had invested in the Fund through Class A shares, later attempting to redeem their investments. The Fund failed to pay the redemption sums, offering participation notes instead. The Plaintiffs argued that the Fund was commercially insolvent and sought the appointment of joint liquidators.
SUMMARY:
(1) Did the Fund validly redeem the Plaintiffs' shares in kind? (2) Was the Fund insolvent on a cash flow basis? (3) Were the Plaintiffs creditors or merely unredeemed shareholders?
OUTCOMES:
Fund deemed insolvent; Joint liquidators appointed; Redemption obligations classified as debts.
RULED IN FAVOUR OF:
BNY AIS Nominees Ltd. et al. (Plaintiffs)
PLAINTIFF/CLAIMANT
DEFENDANT:
DURATION (DAYS):
ISSUES:
RELEVANCE:
RULING:
RULING TYPE:
CASES CITED:
Join our pro membership and get all the details at your finger tips
Want to see full case details, including key arguments and claims? [Join Pro Membership] to unlock exclusive insights.
Discover the legal strategies and defenses used in this case. [Join Pro Membership] for full access.
How long did this legal battle last, and what key events happened? [Join Pro Membership] to find out.
Uncover the critical legal principles debated in this case. [Join Pro Membership] for in-depth analysis.
See why this case matters in Banking, Mortgages, and Financial Services. [Join Pro Membership] to explore its impact.
Find out the final judgment and its legal implications. [Join Pro Membership] to access the ruling.
Understand how this judicial ruling sets a precedent in law. [Join Pro Membership] for expert breakdowns.
See how past legal precedents influenced this case. [Join Pro Membership] to unlock the list.
Download Case Summary:
Explore:
EPHESIANS 6:16
PT Satria Tirtatama Energindo v. East Asia Company Limited and Bali Energy Limited
2016
RE: C (VARIATION OF ACCESS ORDER)
2015
In the Matter of IPOC Capital Partners Limited and others
2007
Hindsight law can make mistakes. Consider checking original case studies
BNY AIS Nominees Limited et al. v. Stewardship Credit Arbitrage Fund Ltd. Supreme of Bermuda
Investment funds managed by the Gottex Group sought a winding-up order against Stewardship Credit Arbitrage Fund Ltd. (the ?Fund?) due to alleged insolvency. The Plaintiffs had invested in the Fund through Class A shares, later attempting to redeem their investments. The Fund failed to pay the redemption sums, offering participation notes instead. The Plaintiffs argued that the Fund was commercially insolvent and sought the appointment of joint liquidators.