Bermuda

Grant Thornton has been given leave to appeal to the Privy Council a decision by the Bermudian Court of Appeal in a case that impacts on the ability of courts to assist foreign liquidators, Economia reported. According to the firm, which is acting as liquidator to a Cayman Islands company, the issue is not clear and as a result has been a “hot topic” among lawyers and cross border insolvency professionals for several years. The Privy Council will now consider arguments involving the current case – Singularis Holdings Ltd v PwC – and an earlier one, PwC v Saad Investments Company Ltd.

Bermuda's Supreme Court ruled for the liquidation of Brazilian private-equity firm Laep Investments Ltd, in response to a reuqest by an investment fund, according to a securities filing on Wednesday, Reuters reported. Laep, which is based in Bermuda but mostly operated from its offices in São Paulo, has been under strain in recent years after some of its main investments - including milk producer LBR Lácteos do Brasil SA and high-end luxury retailer Daslú - failed to produce the expected returns.

Ernst & Young are aiming to dig the Tucker’s Point Club out from underneath a mountain of debt, the Bermuda Sun reported. At 2pm on Thursday Roy Bailey and Keiran Hutchison of Ernst & Young Ltd., Bermuda were appointed joint receivers of Bermuda Properties Ltd and certain subsidiaries which own the Tucker’s Point resort. The receivership only affects the companies that own the property and do not affect Rosewood Hotels & Resorts, who will continue to operate the resort and golf club on a business as usual basis.

David Cameron’s hopes of agreeing an international deal on fighting tax evasion suffered a blow when Bermuda said it would not commit to a pact before next week’s summit of the Group of Eight leading economies, the Financial Times reported. UK officials fear that if some British Overseas Territories and Crown Dependencies fail to come into line, it could limit the scope for an ambitious agreement at the summit in Lough Erne, Northern Ireland.

Gerova Financial Group Ltd., a Bermuda-based financial-services company, sought U.S. bankruptcy court protection listing debt of as much as $500 million, Bloomberg reported. The Hamilton-based firm, formerly known as Asia Special Situations Acquisition Corp., filed a Chapter 15 petition in Manhattan today to protect its U.S. assets from creditors. Assets were valued at more than $50 million, Gerova said. Gerova began liquidation proceedings July 20 in Bermuda. Chapter 15 shields foreign companies from U.S. lawsuits and creditor claims while a company continues the process abroad.

General Maritime Corp., the second-largest U.S. owner of oil tankers, can draw $30 million of a $75 million loan that will require it to file a plan of reorganization in 75 days or sell all its assets, Bloomberg reported Friday. U.S. Bankruptcy Judge Martin Glenn in Manhattan court today approved the company’s request to borrow funds from Nordea Bank Finland Plc and other lenders. The company, which operates in over 230 ports of call in over 70 countries, filed for bankruptcy yesterday after falling oil demand and a surplus of ships led to two years of losses.

New Zealand-listed Hamilton Securities Ltd will make an off-market takeover bid for the debentures of the Timbercorp Orchard Trust, The Sydney Morning Herald reported on an AAP story. Hamilton Securities, which was founded in October 2009, will offer 30 A-class shares in Hamilton Securities for each debenture, of which there are 567,737 on issue, each with a face value of $100.

Lehman Brothers Holdings Inc.'s Bermuda-based life insurance unit, Lehman Re, filed for bankruptcy protection, citing alleged shortfalls on its reinsurance obligations and lawsuits against it in the US, The Royal Gazette reported. The petition for Chapter 15 bankruptcy in Manhattan court on Thursday listed more than $1 billion in debts and as much as $1 billion in assets. Under Chapter 15, companies can win protection from US lawsuits and organise US creditors to help with the company's main bankruptcy in another country.

Bankrupt Canadian telecommunications provider Nortel Networks Corp. has tapped Cleary Gottlieb Steen & Hamilton LLP to assist in the sale of its global Enterprise Solutions business to Avaya Inc. for $475 million, as the company continues to unload assets, Bankruptcy Law360 reported. Read more. (Subscription required.)

Herbert Smith has won the lead role on the administration of the UK subsidiary of telecoms manufacturer Nortel, a deal which will see the UK firm representing the company throughout 18 jurisdictions, Legal Week reported. The firm was appointed by administrators Ernst & Young after it had been advising Nortel on pre-administration matters. The administration order includes entities from across Europe and the Middle East, including France, Germany, Spain and Sweden.