Reuters- Representatives of two failed Bear Stearns Cos Inc hedge funds on Tuesday appealed a U.S. federal bankruptcy court ruling that required them to be liquidated in U.S. courts and not in theCayman Islands, as the fund’s directors prefer.
Holding the proceedings in the Cayman Islands, the famed tax shelter, could have shielded the funds’ assets from some U.S. creditors and cut down on press scrutiny.
Simon Lovell Clayton Whicker and Kristen Beighton, who work for KPMG, the fund’s liquidators, filed an appeal of a U.S. Bankruptcy Court ruling handed down Aug. 30 in Manhattan and amended on Sept. 5.
Bear Stearns spokesman Russell Sherman declined comment. Officials from KPMG were not immediately available to comment.
Bear Stearns Asset Management operated the two funds — the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund — that had invested heavily in collateralized debt obligations (CDOs) backed by subprime mortgages.
