The liquidators of a Cayman Islands master fund and feeder fund (together, the Funds) recently commenced an adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York seeking to recover more than $80 million from one of their financing banks under the fraudulent conveyance laws of both the Cayman Islands and New York State.  In the complaint, the Funds allege that the defendant bank played a “pivotal role” in the alleged fraud perpetrated by the manager of the fund and its founder and principal, which was the subject of a 2010 SEC enforcement action.  This article summarizes the background facts and the plaintiffs’ allegations against the defendant bank.  For other cases involving Cayman liquidators that sought to use Chapter 15 proceedings, see “Delaware Bankruptcy Court Recognizes Cayman Islands Proceeding as ‘Foreign Main Proceeding’ Under Chapter 15 of the U.S. Bankruptcy Code,” Hedge Fund Law Report, Vol. 3, No. 6 (Feb. 11, 2010); and “Cayman Islands Liquidations of Failed Bear Stearns Hedge Funds Denied Access to U.S. Bankruptcy Court,” Hedge Fund Law Report, Vol. 1, No. 13 (May 30, 2008).