On 12 January 2024, the Honourable Mr Justice Kawaley granted an order for the appointment of receivers pursuant to Section 224 of the Companies Act (2023 Revision) (the “Act”), over the Premier Life Settlement Fund SP (the “Fund”), a segregated portfolio of Aquam Funds SPC. Samuel Cole and Mitchell Mansfield of Kroll (Cayman) Limited were appointed as joint receivers of the segregated portfolio.

The Fund was established for the purpose of facilitating investment in life insurance policies and other mortality related products. Conyers acted for the successful petitioner, an investor in the Fund (the “Petitioner”).

When Conyers was engaged by the Petitioner, there were multiple investors in the Fund who had submitted requests for the redemption of their shares and had not been repaid. A significant number of investors had been owed payment for their shares under the terms of the Fund’s PPM for more than a year. The total overall value of redemption monies due to the Fund’s investors was substantial at the time when the receivership application was brought.

Section 224(1)(a) and (b) of the Act provides that the Court may make a receivership order in respect of a segregated portfolio if the Court is satisfied the segregated portfolio assets are or are likely to be insufficient to discharge the claims of its creditors and that the making of an order under the section would achieve the purposes set out in subsection 3 of Section 224 of the Act. Conyers successfully applied on behalf of the Petitioner for the Fund to be placed into receivership.

In cases where there is sufficient urgency, it is possible to obtain relief in the Cayman Islands against a Cayman Islands fund on an even shorter timeframe than 3 months.

Please click here to read Part 1 of this series.

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