Australia’s Basis Loses U.S. Bankruptcy Bid

Jan 16 2008 | 6:39am ET

For the second time, a U.S. court has rejected a collapsed hedge fund’s bid for bankruptcy protection during its offshore liquidation.

Australia’s Basis Capital Fund Management lost its bid for Chapter 15 bankruptcy protection, which would have allowed it to pursue a liquidation of its Yield Alpha Fund in the Cayman Islands, where the fund is registered. But, deferring to an early decision on the liquidation of two collapsed Bear Stearns hedge funds, U.S. Bankruptcy Judge Robert Gerber said, “the court’s power to ascertain the facts can’t be side-stepped by failures to object.”

Basis had argued that it is entitled to the presumption that it has substantial operations where it is registered, a requirement for Chapter 15 protection.

Bear is currently appealing the decision against it, in which U.S. Bankruptcy Judge Burton Lifland ruled that courts can’t “rubberstamp” protection of foreign firms from their debtors.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of