Basis hedge fund denied liquidation in Caymans

``Basis Capital Funds Management will not have the luxury of liquidating its failed fund in the Cayman Islands. The Australian based company, whose Basis Yield Alpha fund was domiciled in the Caymans, originally sought U.S. Protection, but withdrew its petition to have the funds liquidated offshore. US Bankruptcy judge Robert Gerber granted the withdraw yesterday in a Manhattan court. Funds must prove that a majority of their business is conducted in the Caymans, in order to be granted protection from US creditors. Basis had requested this without providing any evidence about the location of their business deals.''