The Eastern Caribbean Supreme Court (Court) in the High Court of Justice in the British Virgin Islands (BVI) recently opined on the validity of the appointment of BVI liquidators for several BVI-domiciled hedge funds made by a manager that has been separately charged by the SEC and the U.S. Commodity Futures Trading Commission with defrauding investors.  The challenge to the liquidators’ appointment came from a U.S.-court-appointed receiver of the hedge funds.  This article summarizes the factual background, legal analysis and holdings by the Court in this matter.  For a discussion of the waterfall provisions applicable to BVI hedge fund insolvency proceedings, see “BVI Court of Appeal Rules on Priority of Redeemed Investors Versus Remaining Investors in a Hedge Fund Liquidation,” Hedge Fund Law Report, Vol. 6, No. 12 (Mar. 21, 2013).