This article first appeared in Business Brief magazine, May 2021 edition.
Across the world, government support has kept insolvency rates down but as jurisdictions look to loosen restrictions and ease back into some kind of normality, governments can't foot the bill forever.
As financial support is withdrawn, restructuring, insolvency and corporate recovery practitioners will likely see a spike in activity, and offshore firms in the Channel Islands are braced for an increase in demand from clients.
R3, trade body for insolvency and restructuring accountants, said the first quarter of 2021 had seen a sharp fall in companies and individuals becoming bankrupt.
Corporate insolvencies in January to March fell by 31 per cent on the preceding quarter.
The figure was 63 per cent lower than the first quarter of 2020.
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 impact of Covid-19 has been felt across the commercial property sector; nowhere more acutely, perhaps, than in "bricks and mortar" retail and hospitality.
Even pre-pandemic, the high street was being forced to adapt to the growth of eCommerce. But consecutive lockdowns have expedited the shift; for some, that change will be irreversible.
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.
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.
