Cayman Islands: Insolvency/Bankruptcy

A leading insolvency and restructuring silk with decades of experience in landmark cases including Thames Water, Lehman Brothers, and BCCI has been appointed to the Cayman Islands Financial Services Division bench. His extensive cross-border expertise and familiarity with both Cayman and Hong Kong courts positions him to handle complex international insolvency matters as the jurisdiction prepares to introduce new restructuring legislation.

The Court of Appeal in Re PetroSaudi International has settled a long-standing debate by confirming that Cayman Islands courts have jurisdiction to order just and equitable winding up where there is a need for investigation into a company's affairs. This landmark appellate decision establishes clear parameters for when the investigative ground can be invoked, requiring proper standing and evidence that unsecured creditors would benefit.

The Cayman and Hong Kong courts have delivered parallel rulings in Re Ourgame International Holdings Limited that fundamentally reshape how liquidators must approach applications for powers and cross-border recognition. These decisions establish that courts will scrutinize each requested power individually, requiring specific justification and evidence rather than granting blanket authority. What does this mean for practitioners seeking to make Cayman liquidations effective across multiple jurisdictions?

The Cayman Islands Grand Court has introduced Rule 7A, granting express powers for pre-action discovery and non-party discovery in civil proceedings. This procedural reform addresses significant gaps in the court's framework by providing a codified mechanism for obtaining documents before litigation commences and from non-parties during ongoing proceedings.

Explore the regulatory landscape for foreign lenders operating in this jurisdiction, examining licensing requirements, security arrangements, and enforcement mechanisms.

The Cayman Islands Grand Court has clarified when supervision orders can be granted for companies in voluntary liquidation, even when existing shareholder petitions remain unresolved.

The structured finance market in the APAC region continues to grow in recent years...

A formal written contract is not necessary to create an enforceable debt obligation. However, such an obligation must be created as a matter of contract or deed.

If the Court is to accede to an application to restrain a winding-up petition, the company must establish prima facie on the evidence that to do so would be an abuse of process.