Liquidating Hedge Funds

Now that some hedge funds are insolvent and forced to liquidate, investors are no longer gleeful over enjoying the tax benefits of a hedge fund organized abroad in tax havens such as the popular Cayman Islands.  How does one go through bankruptcy proceedings with a fund organized in the Caymans?   Our courts will have to apply the complexities of Chapter 15 of the federal bankruptcy law, which applies to oversees liquidations.  Again investors are reminded that the legal paper matters (what are the termination and redemption rights or the insolvency rights???) when the markets turn south.