Platinum Partners fund seeks U.S. recognition of Cayman liquidation

By Caroline Salls

Pittsburgh, Oct. 19 – Platinum Partners Value Arbitrage Fund (International) Ltd. made a Chapter 15 bankruptcy filing Tuesday in the U.S. Bankruptcy Court for the Southern District of New York in connection with its liquidation proceedings pending in the Financial Services Division of the Grand Court of the Cayman Islands.

Joint provisional liquidators Matthew James Wright and Christopher Barnett Kennedy asked the U.S. court to recognize the Cayman Islands proceedings “primarily to obtain this court's assistance in enforcing the stay of proceedings and actions against the funds and property of their estates as ordered by the Grand Court through the liquidation orders.”

As of May 31, master fund Platinum Partners Value Arbitrage Fund, LP’s debt totaled $382 million.

According to court documents, the liquidation proceedings were initiated in the Cayman Islands after private investor and shareholder Parris Investments Ltd. filed a petition for the appointment of liquidators on July 28, citing Platinum’s failure to honor a redemption request.

On Aug. 23, the Cayman Islands court issued a winding-up order for the international fund, and the master fund was placed into provisional liquidation on Aug. 29, pending the determination of its liquidation petition at an Oct. 27 hearing.

The fund is represented in the Chapter 15 case by Holland & Knight LLP.

Platinum is a Grand Cayman-based hedge fund. Its Chapter 15 case number is 16-12934.

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