Insights | Kobre & Kim — Disputes and Investigations

A Cayman Islands court has dismissed liquidators’ efforts to freeze remuneration paid to a professional director represented by Kobre & Kim in a dispute involving a US $270M charitable fund structure, rejecting claims that he held traceable assets subject to a proprietary claim.
The ruling underscores that injunctions are exceptional remedies requiring a credible merits case and reliable evidence.

Chinese ultra-high-net-worth individuals are increasingly relying on offshore trusts, but recent cross-border cases show courts and creditors are increasingly scrutinizing these structures, especially when settlors appear to retain control.
With rising regulatory scrutiny and evolving laws in China, maintaining strong independent governance and carefully structured protections is essential to keep these trusts effective and shield family wealth.

As Sukuk Islamic bonds gain global prominence, investors face distinct enforcement and recovery challenges arising from their Sharia-compliant, asset-linked structures.
Effective protection of investor value depends on understanding who holds enforcement rights, assessing the true reach of underlying assets, coordinating action across jurisdictions, and ensuring strong engagement among Trustees and Sukuk holders.

Family offices are increasingly turning to the United Arab Emirates (UAE) for sophisticated wealth structuring, taking advantage of the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).
Central to this shift is the attractiveness of UAE foundations, standalone legal entities, similar in function to common law trusts.
When properly structured, they support cross-border resilience and align with broader wealth planning strategies.

Delaware’s Domestic Asset Protection Trusts (DAPTs) have earned the state a reputation as a premier jurisdiction for shielding assets from creditors.
These trusts attract individuals and entities around the world seeking strong legal protections.
While international creditors may view asset recovery efforts in Delaware as daunting, it is possible to overcome these protections with a strategic, multijurisdictional approach.

Delaware’s strong asset protection laws have long made the U.S. state a destination of choice for individuals and entities worldwide looking to set up a trust.
International creditors looking to recover assets may feel that pursuing a debtor in Delaware is insurmountable.
However, it is indeed possible to crack Delaware’s notoriously tough trusts by adopting an aggressive multijurisdictional strategy.

Several features make Delaware’s trust law attractive for debtors to hold assets in the jurisdiction.
This also means creditors often struggle when attempting to access the trusts to recover assets.
By deploying aggressive, multijurisdictional strategies, creditors may be able to crack even Delaware’s notoriously tough trusts.

Debtor-friendly Delaware has strong asset protection laws that make it a destination of choice for global entities and individuals looking to hold their assets in a trust.
This creates a headache for international creditors – recovering assets in a Delaware trust can seem like an insurmountable challenge.
By adopting a creative, aggressive and multijurisdictional strategy, however, creditors can crack even Delaware’s notoriously tough trusts.

Cross-border disputes involving ultra-high-net-worth individuals (UHNWIs) can often turn personal.
Commercial counterparties may try to make the UHNWI individually liable, putting their personal assets at risk.
However, if there is a connection to Delaware, UHNWIs can leverage the favorable tools available in the jurisdiction to resolve disputes in their favor.

As global geopolitical tensions rise, Cypriot-held assets are increasingly under threat.
Governments, competitors and other counterparties are increasingly launching aggressive and often unwarranted attacks against the Cyprus assets of ultra-high-net-worth individuals.
At-risk individuals should work with a cross-border team and local counsel to take strategic steps to defend their assets.

Ultra-high-net-worth individuals embroiled in onshore government, commercial or family disputes may find their offshore trusts a vulnerable target.
These often-aggressive attacks set up a complex clash of onshore and offshore law, and demand an equally aggressive and comprehensive response.
There are steps UHNWIs and their advisors can take to reduce their risk exposure and respond to attacks on their wealth.

Governments have increased focus on third parties – including offshore trustees – as they look to enforce their sanctions regimes.
This increases the risk trustees could become embroiled in an accusation of violating sanctions.
Trustees should take proactive, globally comprehensive measures to reduce their risk and avoid a cross-border crisis.

Debtor-friendly Delaware has strong asset protection laws that make it a destination of choice for global entities and individuals looking to hold their assets in a trust.
This creates a headache for international creditors – recovering assets in a Delaware trust can seem like an insurmountable challenge.
By adopting a creative, aggressive and multijurisdictional strategy, however, creditors can crack even Delaware’s notoriously tough trusts.