Why use debt for equity swaps?
Why use Jersey?
What key initial issues must be considered in respect of a new Jersey holding company?
Rise of debt for equity swaps in Jersey

Jersey continues to be the offshore jurisdiction of choice for restructurings involving debt for equity swaps (particularly restructurings of UK and international corporate groups). But what makes Jersey so attractive for this type of transaction?

“The discharge of claims in bankruptcy applies with no less force to claims that are meritorious, sympathetic, or diligently pursued. Though the result may chafe one’s innate sense of fairness, not all unfairness represents a violation of due process.”

Introduction

Legal claims can only be brought within the applicable limitation period prescribed by the Limitation Act (1996 Revision). A defendant to any claim that is time-barred has a complete defence. Prior to the recent decision ofRitchie Capital Management LLC et al (Ritchie) v Lancelot Investors Fund Ltd (Lancelot) and General Electric Company (GE), it had been generally understood that the Cayman approach to claims against companies in liquidation would follow the English position on the issue of limitation.

On March 19, 2021, the United States Court of Appeals for the Third Circuit issued a unanimous decision[1] affirming that the mutuality requirement of section 553(a) of the Bankruptcy Code must be strictly construed and, therefore, that triangular setoffs are not permissible in bankruptcy.

Introduction
Facts
Section 97 principles
BDO's application
Comment

Introduction

Domestic procedures
Cross-border procedures
Creditors
Avoidance transactions
Contributions to the liquidation estate and liability of officers

This article answers key questions regarding restructuring and insolvency in Guernsey.

Introduction

This article answers key questions regarding restructuring and insolvency in Guernsey.

Domestic procedures