Lead Bankruptcy Case Name (Case Number): Fairfield Sentry Limited (10-13164)

Bankruptcy Court District (Division): Southern District of New York

Petition Date: On February 27, 2009, a secured creditor of Fairfield Lambda Limited ("Lambda") commenced proceedings in liquidation proceedings before the Commercial Division of the Eastern Caribbean High Court of Justice, British Virgin Islands (the "BVI Court") pursuant to the BVI Insolvency Act of 2003 (the "BVI Insolvency Act") seeking the appointment of a liquidator over Lambda. On April 21, 2009, ten shareholders applied to the BVI Court for the appointment of a liquidator over Fairfield Sentry Limited. On April 23, 2009, a shareholder applied to the BVI Court for the appointment of a liquidator over Fairfield Sigma Limited. On June 14, 2010, the Foreign Representative filed a petition in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 of the U.S. Bankruptcy Code seeking recognition of the British Virgin Island's liquidation proceedings of the three debtor's as "foreign main proceedings". On July 22, 2010, the Bankruptcy Court for the Southern District of New York issued a order granting that recognition.

Associated Cases: Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited

Plaintiff: Fairfield Sentry Limited and Kenneth Krys, as Foreign Representative and Liquidator

Number of Proceedings: 247

When Filed: from August 12, 2010 to April 6, 2012

Adversary Proceeding Judge: U.S. Bankruptcy Judge Burton R. Lifland

Plaintiff's Counsel: Brown Rudnick LLP (New York, NY) attorneys David J. Molton, May Orenstein, Daniel J. Saval and Kerry L. Quinn

Avoidance Period: The claims in these proceedings are brought under the laws of the British Virgin Islands. The avoidance claims are based on Section 245 and Section 246 of the BVI Insolvency Act of 2003 (the "BVI Insolvency Act"). The BVI Insolvency Act allows for the avoidance and recovery of certain transfers made during the debtor's "vulnerability period". "Vulnerability period" means "in the case of a transaction entered into with, or a preference given to, a connected person, the period commencing two years prior to the onset of insolvency and ending on the appointment of the administrator or, if the company is in liquidation, the liquidator . . . ." BVI Insolvency Act § 244(1) The "onset of insolvency" is defined as: "the date on which the application for the appointment of the liquidator was filed." BVI Insolvency Act, § 244(1). Citing these provisions the complaints allege that "the vulnerability period, for each of the [Debtors], is the period commencing two years prior to the application for the appointment of Liquidators for each Fund and ending on the date of the appointment of the liquidators of each [Debtor].