Press Room
Joint provisional liquidators of Madoff Securities
International gain recognition in U.S. bankruptcy court
Further enquiries to:
UK: Simon Rothschild, Bankside Consultants Tel: + 44
(0)207 367 8888
US: Eric Lewis, Baach Robinson & Lewis Tel: +(1) 202
352 8900
The Joint Provisional Liquidators ("the Liquidators") of
Madoff Securities International Limited yesterday (9 June 2009)
obtained formal recognition in the United States Bankruptcy Court,
allowing them to work in direct coordination with the Trustee of
Bernard Madoff Securities Limited. Chapter 15 of the Bankruptcy
Code permits foreign liquidators to have their proceedings
recognized and to obtain the assistance of the U.S. courts in
carrying out their activities.
The U.S. Bankruptcy Court also approved the protocols put
forward by the Liquidators and agreed with the Trustee that guide
their cooperation going forward. Lawyers for the Liquidators and
the Trustee described to the court their extensive cooperation to
date in exchanging information, examining witnesses and realizing
assets. They also indicated that they were negotiating with the
United States government to make certain that all recoveries were
allocated to victims of the fraud. UK liquidators have powers under
the European Convention equivalent to domestic liquidators to
realize assets, as well as investigatory powers in current and
former Commonwealth jurisdictions. The Liquidators have already
filed proceedings to recover a 27 metre luxury yacht in France paid
for with Madoff International funds.
"New international bankruptcy conventions enable
fiduciaries in cross-border insolvencies to work together to
maximize return to creditors," said Steve Akers, a partner of Grant
Thornton and a Joint Provisional Liquidator. "We assisted the US
Trustee to obtain recognition in England and now we have worked
together for reciprocal cooperation in the United States. This is a
positive step for creditors."
Eric Lewis of Baach Robinson & Lewis, the Liquidators’
lawyer, observed, "With information, witnesses and documents
located all over the world, international recognition of the type
obtained today allows Liquidators to join forces and use their
respective powers to find assets and pursue claims on behalf of the
victims of this massive fraud."