The Cayman Islands restructuring regime will continue to be on the cutting edge and enhanced when amendments to the Cayman Islands restructuring laws come into force on 31 August 2022. Some key highlights and features of the new regime include:
- Allowing a company through its directors to restructure under the supervision of a qualified insolvency practitioner (the “Restructuring Officer”) and the Cayman Court if the company is or is likely to become unable to pay its debts, and it intends to present a compromise or arrangement to its creditors;
- Allowing a company to make an ex parte application to the Court for an order appointing an Interim Restructuring Officer to take immediate effect;
- Providing an automatic stay on creditor action, suit, or other civil proceedings upon the filing of the Court documents and without the need of a Court hearing;
- Separating Cayman’s restructuring regime from the winding-up (i.e., liquidation) regime;
- Improving access to Cayman’s restructuring regime;
- Ensuring the interests of creditors of the company are protected;
- Maintaining the ability of secured creditors to enforce their security; an
- Permitting the restructuring plan to take the form of a compromise or arrangement between the company and its creditors and/or members (or classes thereof), that are governed by English law (i.e., English Schemes of arrangements), United States Chapter 11 and equivalent procedures under non-Cayman restructuring regimes.
Cayman’s new restructuring regime will be the go-to option for a wide variety of company restructurings. If you or your company would like further information, please reach out to your usual Broadhurst LLC contact or simply click the link to my email address ([email protected]) and send me a message.
