Kenneth Krys and Charlotte Caulfield of KRyS Global, the British Virgin Islands Joint Liquidators of Fairfield Sentry Limited, secured a significant decision yesterday (October 13, 2015) when US Bankruptcy Judge, Stuart M. Bernstein handed down his decision granting their motion to disapprove the sale of their $230 million allowed SIPA claim in the Bernard L Madoff Investment Securities Inc. liquidation, to Farnum Place (a Baupost special purpose entity) and US hedge fund. Image: www.krys-global.com

The decision means that foreign representatives, appointed under Chapter 15 of the US Bankruptcy Code, must now seek approval of the US Bankruptcy Court in relation to any proposed US-based asset sales, other than those in the ordinary course of business per the provisions of s363 of the Code.  Such sales will only be given approval where the proposed sale is in the interests of the debtor estate, assessed at the time of the approval being sought, rather than at the date of the sales negotiation.  Foreign representatives must demonstrate to the Bankruptcy Court a sound business decision in reaching their conclusion to seek the Court’s approval or disapproval of the sale.

Kenneth Krys commented: "I am delighted with the decision as it will ultimately be the victims in Fairfield who will benefit from the recoveries on the SIPA claim. The Bankruptcy Court has reiterated the duty of foreign representatives to get the best value for their estates and ensured that this duty can be safeguarded by the s363 approval process."  

David J. Molton and Dan Saval of Brown Rudnick LLP acted as counsel for the Liquidators in this matter.

For more information about KRyS Global visit www.krys-global.com.