Hans Ekstrom and Stefan Peterson, former directors of the
defunct Weavering Macro Fixed Income Fund, have been found
guilty of wilful neglect or default in the discharge of their
duties by the Grand Court of the Cayman Islands.
The judgment comes two-and-a-half years after the fund
entered liquidation amid revelations that it was reliant on a
large interest rate swap position with a company related to the
fund manager, London-based Weavering Capital.
PwC’s 2009 review concluded that Weavering
Macro’s balance sheet value of $506 million was
almost entirely dependent in the value of a series of swap
positions totalling $637 million.
These had been struck with Weavering Capital Finance, which
was not only a related company but also one that lacked the
value necessary to support...