The Royal Court of Jersey can receive requests from outside Jersey by courts prescribed under the Bankruptcy (Désastre) (Jersey) Law 1990 or based on principles of comity. Such requests may involve a Jersey company or any other company with assets or information situated in Jersey. Insolvency practitioners appointed under a law or by a court outside Jersey will have no authority, as a matter of Jersey law, to act in Jersey. It is normal, therefore, for an application to be made for recognition of the appointment of such practitioners and to authorise them to exercise powers in Jersey.

The States of Jersey published a White Paper on a proposed statutory insolvency payments scheme (the "Scheme") on 3 December 2009, with a closing date for consultation responses of Friday 5 February 2010.

The White Paper states:

The Banking Business (Depositors Compensation) (Jersey) Regulations 2009 came into force on 6 November 2009, establishing a compensation scheme providing individual depositors with protection of up to £50,000 per person, per Jersey banking group, in the event of the bankruptcy of a Jersey bank.

The liquidity crisis has increased the need for creative procedures to avoid sudden death bankruptcy in order to salvage existing value.

A Jersey company or a company incorporated elsewhere but administered in Jersey may become involved in insolvency procedures under Jersey law or the law of a jurisdiction outside Jersey.

Winding up a Jersey trust company on just and equitable grounds

In the matter of a Representation by Computer Patent Annuities Holdings Limited and in the matter of Part 18A of the Companies (Jersey) Law 1991 [2010]JRC021

Introduction

This case, heard by the Royal Court in Jersey, involved the approval of a scheme of arrangement pursuant to Article 125 of the Companies (Jersey) Law 1991 (the "Companies Law"), together with the confirmation of a reduction of share capital.

Background

In the matter of Centurion Management Services Limited and Article 155 of the Companies (Jersey) Law 1991 [2009]JRC227

Introduction

This judgment of the Royal Court in Jersey illustrates circumstances in which the court has been prepared to exercise its jurisdiction to order that a company be wound up on the grounds that it is just and equitable so to do.

A temporary Scheme was introduced in March 2009

The purpose of the temporary Scheme is to ensure that former employees of insolvent businesses receive a reasonable amount of compensation promptly, where they are owed money by their former employers.  

In a White Paper published on 03 December 2009 the States proposed to introduce a permanent Scheme. The deadline for respondents to submit their views was Friday 05 February 2010

In the matter of the representation of Anglo Irish Asset Finance [2010] JRC087

This is the latest decision of the Royal Court in relation to an application by a UK creditor (a bank) for a letter of request to be issued to the English High Court requesting that an administration order be made in respect of a Jersey company.

There has been a considerable amount of interest from clients recently on putting Jersey companies holding UK real property and other assets into English administration. Where a Jersey company and its creditors intend to rescue the company as a going concern, or English administration would achieve a better realisation for creditors than a désastre or a winding up, it may be advantageous to commence English administration.