A United States court ruled that liquidators of a family of Virgin Islands-registered feeder funds that steered investors’ money to Bernie Madoff’s investment fund will have more time to file claims to recover assets lost in the Ponzi scheme.
In a May 23 ruling, US Bankruptcy Court Judge Burton Lifland interpreted a section of the US Bankruptcy Code to allow KRyS Global, the liquidator of the Fairfield Funds, a two-year extension to file suit against Irving Picard, the New York-based trustee of Mr. Madoff’s firm.
A press release from the KRyS firm called the decision a “milestone.”
“This decision ultimately provides foreign representatives with additional assistance for preserving a foreign debtor’s claims which may be asserted in the US. Furthermore, it may allow foreign representatives … the right to bring claims in the United States that otherwise might have become time-barred under US or foreign law,” the release stated.
See the June 16, 2011 edition for full coverage.