On July 2, 2012, days after it filed for bankruptcy relief in New York under Chapter 11 of the U.S. Bankruptcy Code (Bankruptcy Code), Fletcher International, Ltd. (Debtor), a master fund in a master-feeder structure, sued some of its own Cayman Islands-based feeder funds to block liquidators from disrupting its bankruptcy proceedings and forcing an asset sale.  The Debtor is appealing the ruling of the Grand Court of the Cayman Islands, which appointed Ernst & Young as liquidators of the feeder funds after three Louisiana pension funds sued to redeem their interests in the feeder funds.  See “Cayman Grand Court Ruling Supports Proposition That Hedge Fund Managers Do Not Have Unfettered Discretion in Making Distributions In Kind to Investors,” Hedge Fund Law Report, Vol. 5, No. 19 (May 10, 2012).  The Debtor generally argues that the Ernst & Young liquidators lack the knowledge of its unique assets necessary to maximize returns for its creditors and shareholders in bankruptcy proceedings.  This article summarizes the factual background and the allegations in the Debtor’s complaint.