Cayman Islands judge on Wednesday approved the pensions' winding-up petition, ordering the FIA Leveraged Fund liquidated and appointing two Ernst & Young employees as its liquidators. The pensions in January moved to have the fund liquidated
The judge agreed with the pensions' position that FIA Leveraged was insolvent. The winding-up petition also accused Fletcher of failing to file audited financial statements for three years and having no directors between Nov. 21, 2011, and Jan. 24.
"We are disappointed in the Grand Court's ruling, which we believe is incorrect," Fletcher said. "The FIA Leveraged Fund is evaluating all of its options at this time
The battle with the three pensions—the Louisiana Firefighters' Retirement System, Louisiana Municipal Employees' Retirement System and the New Orleans Firefighters' Pension and Relief Fund—led to a regulatory investigation of Fletcher. The funds say they invested $100 million