Bahamas Court Recognizes Brazil’s Banco Master Liquidation and Lets Foreign Liquidator Search for Assets

Overview

• The Supreme Court of the Bahamas formally recognized Brazil’s extrajudicial liquidation of Banco Master and appointed EFB Regimes Especiais de Empresas Ltda. as the foreign liquidator, a decision issued on May 26.
• The judgment gives the EFB authority in the Bahamas to access financial records, identify and preserve assets, bring legal claims and seek recovery on behalf of five Master-group entities named in the petition.
• Documents cited in the case point to Treasuries held in two offshore funds — Liquidity Strategies Fund Ltd (linked to Equity Bank Bahamas) and Global Navigator Fund Ltd — with BRB valuations reported at about US$205.5 million and US$114.2 million respectively, but auditors said they lacked full portfolio documentation.
• Court filings reproduce allegations that the bank’s controller and others diverted at least US$1 billion through inflated transactions and overvalued guarantees, a claim that remains under investigation and is not yet proven in full.
• The ruling clears a practical path for cross-border asset tracing and may accelerate evidence gathering, possible recoveries for creditors and further legal actions in multiple jurisdictions, though the decision can be appealed and more cooperation requests are expected.