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09-01161-smb Doc 261-2 Filed 05/20/16 Entered 05/20/16 16:49:42 Exhibit 2 Pg 2 of 5 VIA EMAIL Anthony M. Gruppuso Baker & Hostetler LLP 45 Rockefeller Plaza New York, New York 10111 February 19, 2016 Re: Picard v. Ceretti, et al., Adv. Pro. No. 09-1161 (SMB) (Bankr. S.D.N.Y.) Dear Anthony: We write in response to your February 10, 2016 letter requesting that the so-called Non-Fund Defendants consent to move forward with discovery through the entry of a proposed Stipulation and Order Setting Initial Pretrial Conference Between the Trustee and the Non-Fund Defendants (the Stipulation ). We do not consent to entry of the Stipulation. First, commencement of discovery now is inconsistent with proceedings pursuant to Judge Bernstein s Order Concerning Further Proceedings on Extraterritoriality Motion and Trustee s Omnibus Motion for Leave to Replead and for Limited Discovery (the Extraterritoriality Order ). The Extraterritoriality Order propounded a schedule for resolving pending motions to dismiss based on extraterritoriality (the Extraterritoriality Motions ) in adversary proceedings subject to Judge Rakoff s extraterritoriality decision, Sec. Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLC, 513 B.R. 222 (S.D.N.Y. 2014) (the Extraterritoriality Decision ). The Extraterritoriality Order makes clear that Judge Bernstein will first resolve whether the transfers at issue in each adversary proceeding occurred extraterritorially before considering any other issues. Paragraph 12 sets the time for all defendants in any of the adversary proceedings [at issue] to respond to the complaints. That paragraph states that any response to the complaints and thus any discovery can only move forward after the Court decides whether any counts of the respective complaints or portions thereof should be dismissed. Second, even if the Extraterritoriality Order did not already foreclose the Trustee s request, under the Federal Rules of Civil and Bankruptcy Procedure, there is good cause to delay any party discovery involving the Non-Fund Defendants until after Judge Bernstein has ruled on the Extraterritoriality Motions. Fed. R. Civ. P. 26(c)(1); Fed. R. Bankr. P. 7026. In determining whether to grant a stay of discovery pending a motion to dismiss, [c]ourts consider: (1) [the] breadth of discovery sought, (2) any prejudice that would result, and (3) the strength of the motion. Hong Leong Finance Ltd. (Singapore) v. Pinnacle Performance Ltd, 297 F.R.D. 69, 72 (S.D.N.Y. 2013) (citation omitted). Here, you have not suggested that discovery the Trustee seeks would be limited. Nor have you indicated that the Trustee would suffer any prejudice if discovery does not commence now, and any such argument would be undermined by the fact that the Trustee has made no objection to the effective stay of discovery pending the resolution of the Extraterritoriality Motions for over a year (and even before then). Moreover, we believe that the Extraterritoriality Motions are dispositive of the adversary

09-01161-smb Doc 261-2 Filed 05/20/16 Entered 05/20/16 16:49:42 Exhibit 2 Pg 3 of 5 Anthony M. Gruppuso, p. 2 proceedings against the Non-Fund Defendants, and their adjudication could eliminate entirely the need for costly and time-consuming discovery. There is thus good cause to delay any discovery until after resolution of the Extraterritoriality Motions. See, e.g., Gandler v. Nazarov, No. 94 Civ. 2272 (CSH), 1994 WL 702004, at *4 (S.D.N.Y. Dec. 14, 1994). Indeed, in issuing his decision, Judge Rakoff rejected the Trustee s efforts to obtain discovery while the extraterritoriality issue was pending. See Extraterritoriality Decision, 513 B.R. at 232 n.4. Third, in the event that Judge Bernstein denies the Extraterritoriality Motions, all of the Non-Fund Defendants plan to file motions to dismiss on other grounds, and Citi Hedge Fund Services Limited, HSBC Bank Bermuda Limited, Kingate Management Limited, the Trust Defendants, and the FIM Defendants intend to move to dismiss based on lack of personal jurisdiction. The Extraterritoriality Order protects the right to so move. Paragraph 17 ( Without limitation, nothing in this Order... shall limit, restrict, or impair any defense, right or argument that has been raised or could be raised by any defendant in a motion to dismiss under Fed. R. Civ. P. 12 or Fed. R. Bankr. 7012... including, without limitation, all defenses back on lack of personal jurisdiction. ). To the extent that Judge Bernstein denies the Extraterritoriality Motions, no discovery, including non-party discovery under Federal Rule of Civil Procedure 45 or Federal Rule of Bankruptcy Procedure 9016, can occur with respect to any Non-Fund Defendant over whom the Bankruptcy Court lacks personal jurisdiction. See Gucci Am. Inc. v. Weixing Li, 768 F.3d 122, 141 (2d Cir. 2014) ( A district court, however, must have personal jurisdiction over a nonparty in order to compel it to comply with a valid discovery request under Federal Rule of Civil Procedure 45. ); see also Filus v. Lot Polish Airlines, 907 F.2d 1328, 1332 (2d Cir. 1990) ( [U]ntil [a plaintiff] has shown a reasonable basis for assuming jurisdiction, [it] is not entitled to any other discovery. ) (emphasis added). Accordingly, in the event that Judge Bernstein denies the Extraterritoriality Motions, the next step before any discovery commences would be to confer on a briefing schedule for motions to dismiss or quash discovery on the basis of lack of personal jurisdiction. Prior to resolution of the Extraterritoriality Motions, however, moving forward with discovery would be wholly premature. We are available to meet and confer regarding the foregoing at your convenience. Regards,

09-01161-smb Doc 261-2 Filed 05/20/16 Entered 05/20/16 16:49:42 Exhibit 2 Pg 4 of 5 Anthony M. Gruppuso, p. 3 CHAFFETZ LINDSAY LLP By: /s/ Scott Reynolds 1700 Broadway New York, New York 10017 Telephone: (212) 257-6960 Scott Reynolds Erin E. Valentine Email: scott.reynolds@chaffetzlindsey.com Email: erin.valentine@chaffetzlindsey.com CLEARY GOTTLIEB STEEN & HAMILTON LLP By: /s/ Thomas J. Moloney One Liberty Plaza New York, New York 10006 Telephone: (212) 225-2000 Thomas J. Moloney Email: tmoloney@cgsh.com Attorneys for HSBC Bank Bermuda Limited Attorneys for Kingate Management Limited PAUL, HASTINGS, JANOFSKY & WALKER LLP FRESHFIELDS BRUCKHAUS DERINGER US LLP By: /s/jodi Kleinick 75 East 55th Street New York, New York I 0022 Telephone: (212) 318-6000 Jodi Kleinick Mor Wetzler Email: jodikleinick@paulhastings.com Email: morwetzler@paulhastings.com Attorneys for Carlo Grosso, Federico Ceretti, FIM Advisors LLP, FIM Limited By: /s/timothy P. Harkness 60 1 Lexington Avenue, 31st Floor New York, New York 10022 Telephone: (212) 277-4000 Timothy P. Harkness Email: timothy.harkness@freshfields.com Attorneys for Alpine Trustees Limited, Individually and as Trustees of the El Prela Trust, Ashby Holding Services Limited, Ashby Investment Services Limited, El Prela Group Holding Services, El Prela Trading Investments Limited, El Prela Trust, First Peninsula, Individually and as Trustees of the Ashby Trust, Port of Hercules Ltd., Individually and as Trustee of the El Prela Trust, The Ashby Trust

09-01161-smb Doc 261-2 Filed 05/20/16 Entered 05/20/16 16:49:42 Exhibit 2 Pg 5 of 5 Anthony M. Gruppuso, p. 4 CLEARY GOTTLIEB STEEN & HAMILTON LLP By: /s/carmine D. Boccuzzi, Jr. One Liberty Plaza New York, New York 10006 Telephone: (212) 225-2000 Carmine D. Boccuzzi, Jr. Samuel L. Raymond Email: cboccuzzi@cgsh.com Email: sraymond@cgsh.com Attorneys for Citi Hedge Fund Services Limited cc: Robert S. Loigman, Esq. Rex Lee, Esq. Lindsay M. Weber, Esq.

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