The recent Grand Court decision of Ltd. (Unreported, 19 June 2024, Kawaley J) has reiterated and further clarified the principles to be applied to the remuneration of court-appointed receivers. Given the limited Cayman case law on the topic, the decision provides useful guidance and certainty to Receivers, and to those advising them.

What is a court-appointed 'Receiver', and what is 'remuneration'?

In a decision delivered on 7 June 2024 (2024TALCH02/00950) (the Decision), the Luxembourg District Court provided for substantive clarifications regarding article 10 of the Luxembourg Law of 7 August 2023 on the continuation of businesses and modernisation of insolvency law (the Restructuring Law). This article empowers the Court to appoint judicial agents (mandataires de justice) in case of serious and aggravated misconduct (manquements graves et caractérisés) by the debtor or its corporate bodies, threatening the continuity of the business.

Although an insolvency case, the judgment of His Honour Judge Paul Matthews, sitting as a High Court Judge, in Broom v Aguilar [2024] EWHC 1764 (Ch) deals with a service issue of more general importance.

The judgment of Nicholas Thompsell, sitting as a Deputy High Court Judge, in Hellard & Ors v OJSC Rossiysky Kredit Bank & Ors [2024] EWHC 1783 (Ch) deals with three questions raised by an application of the trustees in bankruptcy of Anatoly Leonidovich Motylev for directions under s 303(2) Insolvency Act 1986:

(1) Should the trustees treat certain Russian bank creditors as being caught by the sanctions imposed under the Russia (Sanctions) (EU Exit) Regulations 2019?

The Privy Council endorsed the Commercial Court's approach in the British Virgin Islands (BVI) in staying insolvency proceedings, even when faced with a pre-existing arbitration agreement, only when a debt is genuinely disputed on substantial grounds.

Introduction

FinReg Update [Jurisdiction] 2024 Regulatory Update Cayman – Q3 2024 Quick Fire Updates mourant.com 1. CRS reporting reminders The Department for International Tax Cooperation (DITC) issued an Updates Bulletin in June 2024 reminding Cayman Islands financial Institutions (FIs) of the following common reporting standard (CRS) annual reporting obligations: CRS Filing Declaration – required by all FIs with a CRS reporting obligation (deadline 31 July 2024) • FIs must make a CRS return to the DITC for each Reportable Account maintained during the reporting period.

In December 2012, Halimeda International Ltd lent $140m to Sian Participation Corp. The loan agreement provided that any claim, dispute or difference of whatever nature arising under, out of or in connection with the loan should be referred to arbitration. In September 2020, in proceedings akin to a winding up petition, Halimeda applied to have liquidators appointed over Sian under the BVI Insolvency Act 2003. Wallbank J held that Sian had failed to show that the debt was disputed on genuine and substantial grounds and ordered that the company be put into liquidation.

Restructuring Plans: should an opposing creditor be granted security for costs? Might that open the floodgates where companies are by definition “distressed,” or was this particular Plan more akin to ordinary adversarial litigation? Read our summary below.

Following the recent conflicting decisions in HQP Corporation (in official liquidation)1(HQP) and Direct Lending Income Feeder Fund, Ltd (in official liquidation)2 (DLI), Simon Dickson and Laura Stone of Mourant Ozannes (Cayman) LLP consider whether shareholder misrepresentation claims can be admitted in a Cayman Islands liquidation.

Op 27 mei 2024 is het Wetsvoorstel overgang van onderneming in faillissement in internetconsultatie gegaan (de WOVOF). De WOVOF beoogt de werknemersbescherming bij faillissement te vergroten, met name in geval van een doorstart. De WOVOF introduceert onder andere een verplichting voor de doorstarter om (in beginsel) alle werknemers uit de failliete onderneming over te nemen. Deze en andere maatregelen worden in dit nieuwsbericht nader toegelicht. 

Huidige regeling en aanleiding WOVOF