The Cayman Islands Court of Appeal recently rejected a bid by a hedge fund investor to pressure the fund into paying out a redemption demand by forcing the fund into liquidation.  It rejected the investor’s liquidation petition as an abuse of process.  Kathrein & Co. (Investor) was an investor in hedge fund Camulos Partners Offshore Limited (Fund), which was organized under the laws of the Cayman Islands.  In July 2008, the Investor sought to redeem its entire interest in the Fund.  The redemption request had an effective date of September 30, 2008.  In early September, the Fund announced a plan of reorganization and subsequently suspended all redemptions in the Fund.  The Investor then commenced an action against the Fund seeking a declaration of its rights to receive the full value of its redemption proceeds.  The Fund opposed that action.  When the Investor learned that the Fund was going to begin distributing cash to all other investors in the Fund (but not to the Investor), the Investor filed a winding-up petition to force liquidation of the Fund.  On appeal, the Court of Appeal determined that the Investor was not entitled to petition for liquidation of the Fund.  It ruled that, because the Investor had other viable alternatives to seek payment of its claim for its redemption proceeds, the petition for liquidation was an impermissible abuse of process.  Consequently, the Court dismissed the liquidation petition.  We summarize the procedural jousting and the reasoning behind the Court’s decision.