Fulltext Search
Restructuring and Corporate Recovery Jurisdiction Guide: Cayman

Domestic Procedures

What are the principal insolvency procedures for companies in your jurisdiction?

Liquidation: voluntary and official.

Cayman does not have an equivalent to the English concept of the company administration or to the Chapter 11 process in the United States.

Schemes of Arrangement/“Soft Touch Liquidations” allow the company to enter into an agreement with its shareholders and/or creditors.

British Virgin Islands, Cayman Islands, Insolvency & Restructuring, Litigation, Ogier
Seventh Circuit Holds that Pre-Bankruptcy Lease Terminations May Be Avoidable

In a case of first impression, the Seventh Circuit recently issued an opinion that may cause landlords and their advisors to re-evaluate the consequences of terminating a financially distressed commercial tenant’s lease prior to bankruptcy. Official Comm. of Unsecured Creditors of Great Lakes Quick Lube LP v. T.D. Investments I, LLP (In re Great Lakes Quick Lube LP), --- F.3d ---, 2016 WL 930298 (7th Cir. Mar. 11, 2016) (Posner, J.).

USA, Energy & Natural Resources, Insolvency & Restructuring, Litigation, Real Estate, McGuireWoods LLP, Bankruptcy, Landlord, Seventh Circuit
In re: Fisker Automotive Holdings, Inc.: caveat emptor for distressed debt purchasers – your credit bid rights may be impaired!

Bankruptcy Court Decision

USA, Insolvency & Restructuring, Litigation, McGuireWoods LLP, Bankruptcy, Debtor, Secured creditor, Distressed securities, United States bankruptcy court
Delaware Bankruptcy Court cuts off electricity providers’ access to Section 503(b)(9) of the Bankruptcy Code

 

The Bankruptcy Court for the District of Delaware recently ruled in In re NE OPCO, INC., 2013 Bankr. LEXIS 4569 (Bankr. D. Del. Nov. 1, 2013), that electricity is not a “good” for purposes of 11 U.S.C. § 503(b)(9).

USA, Delaware, Energy & Natural Resources, Insolvency & Restructuring, Litigation, McGuireWoods LLP, Debtor, Electricity, United States bankruptcy court