Beware the costs of preparatory compliance with liquidators' disclosure orders

The liquidators of two Cayman Island companies obtained orders under s 195(3) of the Bermudan Companies Act 1981 for PwC, as the companies' auditor, to provide information and documents to the liquidators. PwC decided to appeal but, in the meantime, did US$250,000 of preparatory work necessary to enable compliance, if required, with the orders.

As a result of the appeal, both orders were set aside. In PricewaterhouseCoopers v SAAD Investments Co Ltd & Anor (Bermuda) PwC applied to recover from the liquidators the costs of preparing to comply with the orders.

Filed under:
Bermuda, Cayman Islands, New Zealand, Insolvency & Restructuring, Litigation, Buddle Findlay
Authors:
Myles O'Brien , Susan Rowe , Bridie McKinnon , Scott Abel , Kelly Paterson , Willie Palmer , Scott Barker , David Perry , Peter Niven , Jan Etwell
Location:
Bermuda, Cayman Islands, New Zealand
Firm:
Buddle Findlay
Courts, Cooperation, and More: A Review of Cross-Border Insolvency Protocols

In Short

The Situation: For cross-border insolvency matters, parties increasingly depend on court-approved protocols to assist in the management of complex insolvencies involving a debtor or debtors whose assets, liabilities, or operations span international borders.

The Action: Courts in Bermuda, the British Virgin Islands, Singapore, the United Kingdom, and some U.S. bankruptcy districts have implemented Guidelines for Communication and Cooperation between Courts in Cross-Border Insolvency Matters.

Filed under:
Singapore, USA, Arbitration & ADR, Insolvency & Restructuring, Jones Day, Personal jurisdiction, Dispute resolution
Authors:
Kevyn D. Orr , Dan T. Moss , Anna M. Wetzel
Location:
Bermuda, British Virgin Islands, Singapore, USA
Firm:
Jones Day