Clearly when a Cayman Islands liquidator gets appointed by the
shareholders or the Cayman Islands Court, he has a number of duties. He
has a duty to identify, take control and protect the assets of the
company pending the identification and agreement of creditor claims
prior to a distribution. In most Cayman Islands liquidations the assets
are located in another jurisdiction.
While one could speak generally of Cayman companies that do business in Cayman, we are finding the greatest impact of this in the liquidation of Cayman hedge funds, particularly in those instances where the investment management, administration and/or assets are in the United States.