Update

Clawback of Redemption Proceeds: Cayman Islands Court of Appeal Upholds Weavering Preference Claim (and clarifies a number of significant principles of insolvency law in the process)

The Cayman Islands Court of Appeal (CICA) has upheld the Grand Court's decision in Conway and Walker (as Joint Official Liquidators of Weavering Macro Fixed Income Fund Limited) v Skandinaviska Enskilda Banken AB (PUBL) (SEB) in which it held that redemption payments made shortly prior to the collapse of Weavering Macro Fixed Income Fund (Weavering or Fund) constituted preferences over the Fund's other creditors and must be repaid. In doing so, the CICA has clarified and widened the scope of a number of principles which will have a wide ranging affect across a number of aspects of Cayman Islands insolvency law, and not simply limited to preference claims - including the most fundamental principles: the definition of, and demonstrating, insolvency.