Introduction

Introduction

The Grand Court has recently provided helpful clarification as to the appropriate test to be applied when a dispute arises over the identity of the insolvency practitioners proposed to be appointed by a creditor or the company. In Global Fidelity Bank Ltd (in Voluntary Liquidation)^[1] the Court confirmed the 3-stage test for determining independence and that in applying the test, significant weight should be afforded to the views of the creditors.

Background

Introduction
Petitioner
Insolvency
Just and equitable
Consequences of presentation of a petition
Grand Court's discretion

Introduction

Many of the measures of the French Ordinance No. 2020-596 of 20 May 2020, adapting pre-insolvency and insolvency French rules in response to the consequences of the Covid-19 pandemic, were due to expire on 31 December 2020.

The French law on Acceleration and Simplification of Public Action n°2020-1525 of 7 December 2020 now extends them until December 31, 2021.

The extended measures are as follows:

Introduction
General principles
Comment

Introduction

Introduction

Domestic procedures
Cross border
Creditors
Avoidance transactions
Contributions to liquidation estates and liability of officers

This article answers FAQs on restructuring and corporate recovery options available in the Cayman Islands.

This article answers FAQs on restructuring and corporate recovery options available in the Cayman Islands.

Domestic procedures

Introduction

It is trite law that where a petition debt is disputed in good faith and on substantial grounds, the ordinary practice of the Court is to dismiss or strike out the winding up petition. However, this principle is more easily applied in theory than in practice. As a result, the Grand Court of the Cayman Islands has observed recently that "It is remarkable how much case law has been generated in relation to a legal test which has essentially been settled for many years" (Re Sky Solar Holdings Ltd).

At the recent Chambers Economic Forum, the Cayman government announced its intention to bring in a much-anticipated new regime governing corporate restructuring by the end of 2020. Until then, with the COVID-19 pandemic pushing many groups into the zone of insolvency, the following considerations remain relevant to structures involving a Cayman entity: