In re Wimbledon Financing Fund Ltd - Extempore Ruling

¶ COURT OF THE CAYMAN ISLANDS VICES DIVISION Cause: OF THE COMPANIES LAW TITTER OF WIMBLEDON FINANCING FUND LTD

¶ [1] HERBERT S. FEINBERG

¶ [2] DVFG BENEFITS, INC. PLAN;

¶ [3] CLAIRE ANNECHINI

¶ [4] LESTER CLIPPINGER

¶ [5] SERAVALI FINAN- No: FSD 16/2014 GRAND COURT NCI PENSION IRA: IRA: LAL GROUP 14 15 16 17 18 19 20 21 22 AND: 23 24 25 26 27 28 29 Appearances: 30 31 32 33 34 INC. PSP;

¶ [6] THE BELK FOUNDAT-

¶ [7] THE BENEDICT FOU- INDEPENDENT SCHU-

¶ [8] WILLY THOMA IRA: WARRENA HUNTER WIMBLEDON FINANCING Mr. Kyle Broadhurst of Bro- behalf of the Petitioners on behalf of the Company Mr. Hector Robinson of M- ON'S DATION FOR IRA PETITIONERS FUND LTD. THE COMPANY Broadhurst LLC on Durant Ozannes 35 In attendance: 36 37 38 39 40 41 42 Before: 43 Heard: 44 Judgment, Cause No. FSD Mrs. Gail Johnson-Goring Cayman Islands Monet (CIMA) Mr. Todd A. Kellernan, M. D.Johnson and Mr. Russell The Hon. Mr. Justice Charles 15th May 2014 EXTEMPORE RULING 16/2014 in the Matter of Wimbledon Financing Fund Ltd. Coram: Quin J. Date:
1 1. This 2 Feb- 3 up in 4 2. On 5 Petit 6 order 7 Jour- is the hearing of the Winding Up Petition presented to the Mary 2014 for Wimbledon Financing Fund Ltd. (“the Com- accordance with s.92(d) and or (e) of the Companies Law ne 25th March 2014 I made an order for directions, inter alia for the shareholders and creditors of the Company and reded that the petition be advertised in the Cayman Islands at tal not less than seven (7) days prior to the hearing date of e Court on the 24th bany”) to be wound 2013 Revision). a, for service of the on CFTA. I further d in the Wall Street the petition. I note 8 from 9 Sole 10 direct- 11 3. Court 12 been 13 forward 14 4. I now 15 they 16 Inso- the affidavits of Rozlyn Glanfield, dated the 30th April mon, dated the 12th March 2014, that there has been en- vironments. used for the Petitioners, Kyle Broadhurst, has confirmed tha- filed by the Company to challenge the Petition and no ot- erd to challenge the hearing of the Petition to date. t hat both Mr. Johnson and Mr. Homer have filed affidav- ance qualified insolvency practitioners as defined by Re- vency Practitioners’ Regulations 2010. 2014, and Melissa pliance with these at no evidence has her party has come its confirming that grounds 5 of the 17 5. From also Com- mans 22 inves- 23 parti- Judgment Cause No. F my reading of Mr. Kellerman’s affidavit it is apparent that anently suspended redemptions and its ability to accept the order permanently terminated. Mr. Kellerman’s affidavit may- bany’s object of investing in investment pools mana- gers is no longer possible. Furthermore the Company is no tment business in accordance with the reasonable ipating shareholders. ID 16/2014 In the Matter of Wimbledon Financing Fund Ltd. Coram: Quin J. Dav- e if the Company has y subscriptions has been it clear that the ed by investment longer carrying on expectations of its 150514 Page 2 of 5
1 6. I agree 2 exercise 3 7. Accord 4 of Phil 5 ‘A’ 6 shall 8 with Mr. Broadhurst that the foregoing facts alone in its discretion to wind up the Company. ingly, I follow the now long established dicta of Henderson adelphia Alternative Asset Fund Limited1 where he held the contratum of the company had gone, the petitioners’ disposal order even if it were contrary to the wishes of reholders or creditors.” justify the Court I. In the matter referred to a the majority of 9 8. Henden 10 Lambeth 11 decision 12 9. Accord 13 has been 14 Winding 15 10. In addi- 16 CIMA, 17 Goring son’s Judgment in Philadelphia has been followed by the of Investors Fund, Re Belmont Limited and in several its. ingly, following Henderson J’s decision in Philadelphia, I n a loss of the substratum of the Company the Petitioners’ g Up Order. action, I have the read the letter of Mrs. Johnson-Goring, con- dated the 7th May 2014. It is clear from the contents of s letter that this matter is of regulatory concern to CIMA. The Grand Court in her Grand Court find that, as there are entitled to a use on behalf of Mrs. Johnson- A. Mrs. Johnson 18 Goring 19 Further 20 Further 21 payment 1 Unreported - dated 2 (2009) CILR 7 3 (2010) I CILR 83 Judgment Cause No. FSD has confirmed that the Fund is in breach of s.8(b) and (c) law for failure to prepare and submit audited accounts for years, the Fund is in breach of s.9(1) of the Mutual Fund Act of its annual registration fees. I note that although CIMA he 22nd February 2006. (2006) CILR Note 7 16/2014 In the Matter of Wimbledon Financing Fund Ltd. Coram: Quin J Date : ) of the Mutual 2011 and 2012. Law for non- s not, today, in a 50514 Page 3 of 5
1 posi 2 up, 3 apply 4 pers 5 to M 6 11. In th 7 Jones 8 Fund 9 10 11 12 13 14 15 16 17 18 19 12. The 20 direc 21 lacks Law and stated at paragraph 15 on page 11: In my judgment a continuing failure to file audited financial statements by statutory deadline, or after the expiry of any extensions, CIMA is a serious matter. It constitutes a criminal offence of the Mutual Funds Law. A failure to produce financial care and audited opinion in a timely manner "raises a reasonable of financial difficulties and failings on the part of an such a breach of duty be regarded as a purely negligence" CIMA can, and frequently does, grant extended cause". Comments that the location of the Company's assets is tors have acknowledged that they are unable to take any of funding. of time allowed by under section 8(5) statements and/or flag". It is usually management. Nor technical matter. sions of time for undertaken and the ction as a result of 22 13. The 23 and 24 appr 25 of the * (2011) CILR 1 Judgment Cause No. 1 contents of CIMA's letter and the evidence contained in it, demonstrate that there is an urgent need for the appropriate investigations to protect the interests of the shareholders of Company. In Mr. Kellerman's creditors to make lders and creditors Page 4 of 5
1 14. It is 2 unable 3 find it 4 up of 5 15. I am 6 Petitio 7 wind apparent from the evidence set before the Court that the to pay its debts. The Company has wholly failed to pay its that, in itself, is another sufficient ground on which to the Company. satisfied on reading the affidavit of Todd Kellerman and the means law made out their case and that it is a proper case for up the Company and to appoint professional liquidators. Company is also annual fees and I order the winding. exhibits that the trial trial order to 8 16. Accon 9 apply as 10 as the 11 12 13 14 Dated this the 15 15 16 17 18 Singly, I order the winding up of the Company in the ter- mingly, I order the winding up of the Company in the ter- ritor Messrs. Christopher Johnson and Russell Horner of Johns Faint Liquidators of the Company day of May 2014 ms prayed and I on and Associates 19 20 21 23 24 25 26 Honourable Mr. 27 Judge of the Grand Judgment, Cause No. FSI Justice Charles Quin d Court 16/2014 in the Matter of Wimbledon Financing Fund Ltd. Coram: Quin J. Date: 50514 Page 5 of 5