Under Cayman law, only a creditor (whose status as such is undisputed) is permitted to petition for the liquidation of a debtor.  The Grand Court of the Cayman Islands, Financial Services Division (Court), recently clarified whether there was ambiguity as to the creditor status of a trade counterparty of a hedge fund where the trade counterparty petitioned the Court to liquidate the hedge fund.  The petitioner was a counterparty of a hedge fund pursuant to various commodities contracts.  The fund failed to take delivery of – or to pay for – copper cathodes that it had contracted to buy from the petitioner.  The petitioner claimed it was a creditor of the fund and petitioned the Court to appoint liquidators for the fund.  The fund challenged the petitioner’s standing as a creditor to bring the winding-up petition.  This article summarizes the background of the case, the legal analysis and the Court’s ruling.