U.S. Bankruptcy Judge Asserts American Sovereignty Over Cayman Island "Letterboxes"; British Are Stung

I bet this has really made some relevant people extremely angry.

Half the fun right now is watching all the shit float to the top.



U.S. Bankruptcy Judge Asserts American Sovereignty Over Cayman Island "Letterboxes"; British Are Stung



September 1, 2007 (LPAC)--Lyndon LaRouche has lauded a Federal Bankruptcy Court Judge's Aug. 30, 2007 ruling, quashing efforts by Bear Stearns to assert Cayman Islands sovereignty over two of their New York-based hedge funds that recently went bust in the sub-prime mortgage blowout. "Look at what this means," said LaRouche. "The sovereign of the Cayman Islands and other off-shore entitites is the Queen. Will the British monarch concede that she will not extend protection to corporations attempting to use her territory as a means of defrauding American investors?" The court ruling has dramatic implications for the entire Anglo-Dutch offshore, unregulated financial system, at the heart of the global bubbble.

The Aug. 30 ruling by Judge Burton R. Lifland, of the United States Bankruptcy Court in New York, rejected claims by Bear Stearns that two of their now-bankrupt hedge funds, could file their bankruptcy liquidation proceedings on the Cayman Islands, rather than in the United States. The Judge did a careful review of Chapter 15 proceedings under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which allows companies primarily based abroad, to file liquidation proceedings in their primary location and receive U.S. court approval for those findings. In the case of Bear Stearns' High-Grade Structured Credit Stratgegies Master Fund, Ltd. and High-Grade Structured Credit Strategies Enhanced Leverage Master Fund, Ltd., Judge Lifland found that "The Petitioner's own pleadings provide the evidence to establish that the Funds' COMI ("center of main interest'') is in the United States, not the Cayman Islands. The only adhesive connection with the Cayman Islands that the Funds have is the fact that they are registered there... The Verified Petitions have demonstrated... there are no employees or managers in the Cayman Islands, the investment manager for the Funds is located in New York, the Administrator that runs the back-office operations of the Funds is in the United States along with the Funds' books and records and prior to the commencement of the Foreign Proceeding, all of the Funds' liquid assets were located in the United States... Thus I cannot grant recognition of the Foreign Proceedings as main proceedings.''

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Last Edited by SPUD on 08/15/2011 08:14 PM