Kenneth Krys & Christopher Stride, Appointed by the High Court of Justice, British Virgin Islands as the Liquidators of Fairfield Sentry Limited, the Largest Madoff Feeder Fund, Obtain Recognition of the BVI Liquidation Proceedings in the US

NEW YORK--(BUSINESS WIRE)--On 22 July 2010, Messrs Kenneth Krys and Christopher Stride of Krys & Associates (BVI) Limited, the Liquidators of Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited obtained cross-border recognition as foreign main proceedings by the United States Bankruptcy Court for the Southern District of New York of the Funds’ insolvency proceedings, pending in the British Virgin Islands.

“non-recognition where recognition is due may forestall needed inter-nation cooperation.”

Fairfield Sentry Limited was the largest “feeder fund” to Bernard L. Madoff Investment Securities LLC (“BLMIS”), and invested approximately 95% of its assets with BLMIS. BLMIS was placed into liquidation proceedings in the United States in December 2008, after it was revealed that Bernard Madoff operated BLMIS as a Ponzi scheme for many years. Fairfield Sigma Limited and Fairfield Lambda Limited were both feeder funds of Fairfield Sentry Limited, and invested all of their assets with Fairfield Sentry Limited.

On 14 June 2010, the Liquidators, represented by their U.S. Counsel, Brown Rudnick LLP, sought cross-border recognition of the Funds’ British Virgin Islands based insolvency proceedings as foreign main proceedings under Chapter 15 of the United States Bankruptcy Code as part of the Liquidators’ efforts to realize upon and maximize recoveries available for distribution to the Funds’ stakeholders.

A contested hearing on the Liquidators’ Chapter 15 petitions was held by the Bankruptcy Court on 22 July 2010. Ruling from the bench, United States Bankruptcy Judge Burton R. Lifland granted “foreign main recognition” to the Funds’ British Virgin Islands based insolvency proceedings under section 1517(b)(1) of the Bankruptcy Code. In granting the relief sought by the Liquidators, the Court observed that “non-recognition where recognition is due may forestall needed inter-nation cooperation.” As part of the relief granted, a lawsuit brought derivatively on behalf of Fairfield Sentry Limited by purported shareholders in Fairfield Sentry Limited was stayed.

The filings relating to the funds’ Chapter 15 petitions, including the Bankruptcy Court’s 22 July 2010 Order, have been uploaded to: www.fairfieldsentry.com www.fairfieldsigma.com www.fairfieldlambda.com

Krys & Associates is a firm dedicated to Corporate Recovery, Insolvency, Forensic Accounting and Business Advisory Services. The Firm's Chief Executive Officer and Founder is Kenneth Krys, who has over 20 years of experience dealing with complex international assignments.