Cayman Islands Judge Orders Apple Tree Partners to Relinquish Fund Control
A Cayman Islands judge ruled that Apple Tree Partners, led by biotech entrepreneur Seth Harrison, must immediately give up control of its fund, with two Alvarez & Marsal employees appointed to oversee the partnership, The ruling sets up a potential fight for control of assets currently overseen by a US bankruptcy judge in Delaware, including a portfolio of drug-development companies that could be sold to repay creditors if the Chapter 11 case continues. Investor Dmitry Rybolovlev has argued the bankruptcy case should be dismissed, which would help his family trust assert control of the portfolio, the report said. The dispute between Harrison and Rybolovlev's trust, Rigmora, began over a year ago when Apple Tree accused Rybolovlev of reneging on funding commitments for life-science startups, while the trust accused Apple Tree of mismanaging its money.
A Cayman Islands judge ruled that Apple Tree Partners, led by biotech entrepreneur Seth Harrison, must immediately give up control of its fund, with two Alvarez & Marsal employees appointed to oversee the partnership, The ruling sets up a potential fight for control of assets currently overseen by a US bankruptcy judge in Delaware, including a portfolio of drug-development companies that could be sold to repay creditors if the Chapter 11 case continues.
Investor Dmitry Rybolovlev has argued the bankruptcy case should be dismissed, which would help his family trust assert control of the portfolio, the report said.
The dispute between Harrison and Rybolovlev's trust, Rigmora, began over a year ago when Apple Tree accused Rybolovlev of reneging on funding commitments for life-science startups, while the trust accused Apple Tree of mismanaging its money.