Madoff case – Luxembourg court orders winding-up of Luxalpha and Herald (Lux) funds

On 2 April 2009, the Luxembourg District Court (Tribunal d’Arrondissement) has ordered the dissolution and winding-up of Luxalpha SICAV and Herald (Lux) SICAV (two funds which have invested in Bernard Madoff Investment Securities LLC) pursuant to article 104(1) of the Luxembourg law of 20 December 2002 relating to undertakings for collective investments, as amended from time to time.
This court decision means that the decisions taken by the CSSF respectively on 3 February 2009 and 11 February 2009 regarding the withdrawal of Luxalpha SICAV and Herald (Lux) SICAV became final.
The court decision provides that the Luxembourg liquidators of Luxalpha SICAV and Herald (Lux) SICAV represent these SICAVs as well as its investors and creditors, and that their powers will be exercised in Luxembourg and abroad pursuant to the unity and universality principle of the judicial winding-up of companies having their registered office in Luxembourg. The rule applies to movable and immovable property of the SICAVs even if these properties are abroad. The court decision furthermore states that the unitholders of Luxalpha SICAV will be considered as shareholders. The holders of units Luxalpha SICAV and Herald (Lux) SICAV will not need to file their statement of claims in order to assert their rights. They will be convened at least once a year by the liquidators in a general meeting in order to be informed of the results of the winding-up and the reasons why the winding-up procedure is not terminated. The first general meeting will be held before 31 October 2009.