Australian hedge-fund in trouble

clipped from www.iht.com Cayman Islands court orders liquidation of Australian-run hedge fund By Tim Johnston Published: August 30, 2007 SYDNEY: A court in the Cayman Islands placed the Basis Yield Alpha Fund in provisional liquidation after the Australian-run fund's evisceration by the U.S. subprime mortgage crisis. The court in the Cayman Islands, where the fund is based, appointed the U.S. accounting firm Grant Thornton as provisional liquidators. "At this stage we are undertaking an immediate assessment as to the financial position of the fund and any likely return to investors," Paul Billingham, a Grant Thornton partner, said Thursday in a statement. Grant Thornton has applied for Chapter 15 protection in a New York court. Chapter 15, a recent addition to the U.S. bankruptcy code, allows a judge to give formal recognition to an overseas bankruptcy procedure and protects the assets from seizure by U.S. creditors while the process is being carried out.