Millennium Global Emerging Credit Master Fund Limited and Millennium Global Emerging Credit Fund Limited (both in liquidation)
The Funds were placed in provisional liquidation by the Supreme Court of Bermuda (“the Court”) on October 16, 2008.
On December 1, 2011, Michael Balboa, the former portfolio manager of the Funds, was arrested in New York following the filing of a criminal complaint by the Department of Justice on November 30, 2011. In addition the Securities and Exchange Commission (“SEC”) filed a civil complaint against Michael Balboa and Gilles Decharsonville on December 1, 2011. Copies of the complaints are attached.
During the course of the Joint Liquidators’ (“JLs”) work, a review of the circumstances leading to the collapse of the Funds was undertaken.
This review uncovered the considerable overvaluations of holdings of Nigerian warrants (and another holding of the Fund) which were central to the complaints referred to above.
The JLs continue to pursue asset recoveries, however due to the nature of the actions being pursued the JLs are unable to provide further details. The JLs continue to advise and work with the Committees of Inspection of the Funds representing the body of creditors of the Funds and to update the Court as appropriate. The JLs sent an update on progress in the liquidation to all known creditors and investors on December 20, 2011.
The JLs remain of the view that it is extremely unlikely that there will be any distributions to investors of the Feeder Fund.
Millennium Global Emerging Credit Master Fund Limited
On March 5, 2009, following resolutions of the meetings of creditors and contributories of the Master Fund, the Court appointed the JPLs to be permanent liquidators of this fund to act with a Committee of Inspection. The members of the Committee of Inspection of the Master Fund are:
- Credit Suisse Securities (Europe) Limited
- Hampshire County Council.
Millennium Global Emerging Credit Fund Limited
On January 30, 2009 the first statutory meetings of creditors and contributories of the Feeder Fund were held to consider resolutions for the appointment of permanent liquidators and a Committee of Inspection.
The meeting of creditors resolved to appoint the JPLs as permanent liquidators of the Feeder Fund to work with a Committee of Inspection.
The meeting of contributories was, by agreement, adjourned until February 25, 2009. At that meeting, the contributories did not pass a resolution with respect to the appointment of permanent liquidators as neither set of proposed nominees received the majorities required for a resolution to be passed under the Bermuda Companies (Winding-Up) Rules 1982, namely a majority in both number of votes cast and the number of shares held.
As a result of this difference of opinion among the contributories, the JPLs determined that it was appropriate that an application be made to the Court for direction on the appointment of permanent liquidators and a Committee of Inspection.
On April 16, 2009 the Court appointed the JPLs as permanent liquidators of the Feeder Fund to act with a Committee of Inspection. The members of this Committee of Inspection are:
- Hampshire County Council
- SG Hambros Bankers Trust (Bahamas) Limited
- Citco Global Holdings NV as custodian for the Liongate entities.
Documents available to download
Adjourned meeting correspondence
Orders
Original Correspondence Sent
Complaints against Balboa
Transfer request forms 
Transfer of Shares includes
Transfer request letter
Share transfer form,
Acknowledgement of transfer conditions
Extract From Offering Document