Stanford liquidators can seek bankruptcy-judge

HOUSTON, May 18 (Reuters) - The Antiguan liquidators for Texas financier Allen Stanford's offshore bank in Antigua may seek bankruptcy protection for the institution under U.S. law, a federal judge has ruled.

Liquidators Nigel Hamilton-Smith and Peter Wastell, who were appointed by the Antiguan government, "have shown good cause" to seek Chapter 15 bankruptcy for Stanford International Bank Ltd., U.S. District Judge David Godbey in Dallas said in a court order filed late on Friday.

A Chapter 15 filing helps resolve cases involving debtors, assets and claimants in multiple countries. In this case, the liquidators want the authority to file for bankruptcy as a means of safeguarding the bank's assets.

The U.S. Securities and Exchange Commission has accused Allen Stanford and two others of an $8.5 billion fraud involving certificates of deposit issued by Stanford's Antigua bank.

Ralph Janvey, the U.S. court-appointed receiver in charge of Stanford's operations and assets, had opposed a bankruptcy filing for the bank, saying it would be disruptive and costly.

A spokesperson for Janvey did not have an immediate comment.

The British liquidators of convicted swindler Bernard Madoff's securities trading firm in London filed a Chapter 15 petition in April allowing them to marshal assets that may have been involved in fraud. (Reporting by Anna Driver in Houston; Editing by Steve Orlofsky)