This case concerned Herald Fund SPC (In Official Liquidation) (“Herald”), which was an open-ended investment fund, which was incorporated on 24 March 2004. Herald invested the majority of its funds in the Bernard L. Madoff Investment Securities LLC (“BLMIS”). The Primeo Fund (In Official Liquidation) (“Primeo”) was incorporated on 18 November 1993 and also carried on business as an open-ended investment fund. Primeo initially placed funds for investment directly with BLMIS in 1993 but, from 2004 onwards, it invested in Herald which resulted in it becoming an indirect victim of the Madoff Ponzi scheme.
The above proceedings concerned an application that certain issues involved the liquidation of Herald (which included an additional liquidator (the “Additional Liquidator”) acting as Herald’s representative) and Primeo be resolved through the direction of the Court. Primeo was placed into voluntary liquidation on 23 January 2009 and its liquidation was brought under the supervision of the Court on 8 April 2009. Herald had suspended the calculation of its net asset value (the “NAV”) and the issue and redemption of shares on 12 December 2008 (the day after the revelation of the Madoff fraud) but remained under the control of its Directors until 23 July 2013 when a winding up order was made on the petition of Primeo.
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Primeo Fund (in official liquidation) -v- Herald Fund SPC (in official liquidation), FSD 27/2013, per Jones J (12 June 2015)