Receiver sought for Reserve International fund

Shareholders have filed court papers asking the New York State Supreme Court to name a receiver for Reserve Management Co. Inc.’s International Liquidity Fund, in order to organize its liquidation. Caxton International Limited of the British Virgin Islands and Caxton Equity Growth Holdings LP of Hamilton, Bermuda, filed the complaint, which will be the focus of an Oct. 17 hearing. Both firms are subsidiaries of Caxton Associates LLC of New York. The court will name a receiver for the fund in order to calculate net asset value from Sept. 12 to the present and to oversee the sale of any securities in connection with the fund’s liquidation and redemption requests. In addition, the receiver will be required to prepare a preliminary report within 10 days of being appointed with an accounting, liquidation and processing schedule. The Reserve has agreed not to process any redemptions until after the hearing is held and the process is in place, said a Reserve spokeswoman. The Reserve has been named in several lawsuits since its Primary Fund “broke the buck” in net asset value on Sept. 16 due to holdings of debt from the bankrupt Lehman Brothers Holdings Inc. of New York. The event sparked an industrywide run on money market mutual funds. Within weeks, plans were announced to liquidate most of the firm’s money funds.