By Gene A. DaCosta, Ben Hobden, Maree Martin, Kevin C. Butler

Ardon Maroon Asia Dragon Feeder Fund (the “Feeder Fund”) was a feeder fund into Ardon Maroon Asia Master Fund Limited (the “Master Fund”) (together, “the Funds”), a structure by which investors would subscribe for shares in the Feeder Fund and the Feeder Fund would use this capital to subscribe for shares in the Master Fund. The Feeder Fund did not retain any liquidity or own any assets other than its Master Fund shareholding and (as is common in such structures) both the Feeder Fund and Master Fund appointed the same service providers including the Investment Manager, Administrator and directors. This structure is one which is common in the Cayman Islands.

In the unreported judgment delivered 17 July 2018, In the matter of Ardon Maroon Asia Master Fund (in official liquidation) Cause no. FSD 18 of 2015, the Hon Justice Robin McMillan found that, in a master-feeder fund structure, a feeder fund redemption was ineffective on the basis that there was a failure by the feeder fund to serve a further
redemption notice on the master fund in accordance with the procedures set out in the master fund constitutional documents.