Basis Capital Management in Bankruptcy Court

Basis Capital Fund Management, Ltd. is an Australian firm which is currently in Chapter 15 Bankruptcy. The case is pending in the U.S. Bankruptcy Court for the Southern District of New York. The fund was located in the Cayman Islands and is now seeking protection in the United States.

“Basis Yield said in court papers filed on Monday that its auditors and attorneys as well as several multimillion-dollar transactions in the Cayman Islands qualify its business there as a “center of main interest.” Under US bankruptcy law, a foreign company with a center of main interest outside the US can win protection from US lawsuits.

Basis Yield filed for liquidation last month in the Cayman Islands and submitted a petition in New York under Chapter 15 of the US bankruptcy code on August 29. Bankruptcy Judge Robert Gerber gave Basis Capital a four-page list of evidence he wants to see before deciding whether the Cayman Islands can be the main center of liquidation. A hearing on Basis Yield’s request is still pending before Gerber.”

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