Liquidators of Kingate Funds Announce Key Court Approval of Settlement with Madoff Trustee Irving Picard
The Joint Liquidators of Kingate Global Fund, Ltd. and Kingate Euro Fund, Ltd. (“the “Kingate Funds”) have announced that the High Court of the Virgin Islands approved the global settlement with Irving H. Picard, as trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”).
The approval, which follows the approval last month by the US Bankruptcy Court for the Southern District of New York, is one of the key requirements to consummating the settlement and compensating certain victims of the fraud. Subject to approval by the Supreme Court of Bermuda at a hearing scheduled for next month, the parties have agreed to a mutual release of all claims.
“We are pleased that the settlement has achieved assent of the courts in New York and the British Virgin Islands and the support shown for it to date by the judiciary demonstrates the appropriateness of this outcome at this juncture. We look forward to presenting the settlement to the Supreme Court of Bermuda for its due consideration,” said Paul Pretlove, managing director of Kalo and one of the Joint Liquidators of the Kingate Funds alongside Tammy Fu and John C. McKenna. “Once approved by the three courts, we will be able to effectuate the settlement, which makes hundreds of millions of dollars available to directly compensate investors in the Kingate Funds for their losses in the Madoff fraud in what we continue to believe represents the best recovery achievable and an excellent result.”
The Kingate Funds invested approximately $1.7 billion with BLMIS over a 14-year period. Following the arrest of Mr. Madoff and the commencement of liquidation proceedings of BLMIS, the Kingate Funds also went into liquidation in the British Virgin Islands.
Kalo’s Paul Pretlove and Tammy Fu were appointed joint liquidators of the Kingate Funds alongside John C. McKenna of Finance & Risk Services. The Kalo liquidation team also includes directors Anna Silver and Iain Gow. Eleanor Morgan, of the Mourant law firm, represented Kalo in the BVI proceedings, along with John Pintarelli of Morrison Foerster and Robert Loigman of Quinn Emanuel. Seamus Andrew and James Dixon, of SCA Creque, and Gonzalo Zeballos, of Baker Hostetler, represented Irving H Picard.
Kalo is a specialist insolvency and restructuring practice located in the British Virgin Islands and the Cayman Islands. The firm employs 22 professional staff and has six director-level appointment-holders – more than any other offshore insolvency firm. Kalo is an independent and conflict-free advisory firm. For more information visit www.kaloadvisors.com