In the case of Somers Dublin Ltd a/c KBCS & Ors v Monarch Pointe Fund Limited BVIHCV2008/97, the Commercial Division of the BVI High Court ruled that in a liquidation of a fund the claims of a redeemed member for unsatisfied redemptions and continuing members for their equitable interests rank pari passu in the estate of the company, to be paid after all other claims have been satisfied.
Significantly, whilst it was recognised that unpaid redeemed members are classed as “creditors” of the fund, such redeemed members would not rank ahead of continuing members in terms of any distributions made in the liquidation.
It is understood that this ruling is to be appealed. It is being watched by liquidators of other funds as the outcome may materially affect stakeholders in those liquidations.
Forbes Hare acted for the petitioners who successfully applied for the appointment of liquidators of Monarch Pointe Fund Limited.
Catherine Ross, Partner
+44 (0)207 0143 224
Karen Gilbert, Senior Associate
+44 (0)207 0143 225