Judge Burton Lifland of the southern New York court announced his decision regarding the bankruptcies of two Bear Stearns Cayman Island hedge funds, Lifland said that he is keeping the funds' assets out of creditors' reach for another ten days, during which he will weigh whether to grant them Chapter 15 protection.

"The only adhesive connection with the Cayman Islands that the funds have is the fact that they are registered there," Lifland wrote in a ruling in New York, noting that most assets were originally in the U.S. The hedge funds were first granted the preliminary injunction on Aug. 9.

"There are no employees or managers in the Cayman Islands, the investment manager for the funds is located in New York, the administrator that runs the back-office operations of the funds is in the United States along with the funds' books and records, and prior to the commencement of the foreign proceeding, all of the funds' liquid assets were located in the United States," Lifland wrote.
More at HedgeCo; Cayman Island Hedge Fund Bankruptcy Decision on Hold