Question
My client is buying a property from a receiver appointed under an equitable charge granted by a company which has become insolvent. The charge gives a receiver a power of sale and contains a power of attorney. Will the receiver be able to sign all the necessary documents to allow the transaction to proceed to completion?
Answer
Consolidated and amended insolvency and restructuring rules and regulations come into force in the Cayman Islands on 1 February 2018 (the "Amended Rules").
The Amended Rules do not represent a comprehensive overhaul of the rules and regulations but they do make a number of significant changes to the procedural aspects of Cayman Islands domestic and cross-border insolvency and restructuring legislation. These changes largely reflect and codify existing practice.
Companies Winding Up Rules
(1) Timothy Crowden and (2) Carol Crowden v. QBE Insurance (Europe) Limited [2017] EWHC 2597 (Comm)
Summary
This case involved a claim in respect of negligent investment advice brought directly against the insurer of an insolvent financial adviser, pursuant to the Third Parties (Rights against Insurers) Act 1930 (the “1930 Act”).
The insurer successfully relied on an insolvency exclusion clause contained within the insolvent adviser’s professional indemnity policy in order to deny liability to the claimants.
Case Facts
Global Corporate Limited v Dirk Stefan Hale [2017] EWHC 2277 (Ch)
Summary
A recent judgment re-iterates the importance of carefully drafting a deed of assignment when assigning claims.
In Global Corporate, the liquidators of a company assigned certain claims by way of a deed of assignment to Global Corporate Limited (the “Assignee”). The Assignee (the Applicant in this case) then brought several claims against the company’s former director and shareholder.
Can an examiner be appointed to a company which had previously entered into a standstill agreement with one or more of its creditors? In Re KH Kitty Hall Holdings Limited [2017] IECA 247 the Court of Appeal answered "yes".
Does a petitioner have to show that it is unmotivated by self-interest? "No" was the court's answer.
Although many sectors of the Irish economy are experiencing the benefits of economic upturn, a number of Irish homeowners are still dealing with the after-effects of the recession. In this context, some defaulted homeowners are defending repossession proceedings by banks and alternative lenders relying on the EU Directive on Unfair Contract Terms ("UCTD").
In order to prevent the expense of annual 2018 government registration fees, an appointed liquidator will be required to hold the final general meeting for a company or file the final dissolution notice for an exempted limited partnership on or before 31 January 2018.
In a ground-breaking decision for the Cayman Islands as a restructuring centre, the Cayman Islands court has handed down judgment sanctioning four highly complex inter-linked schemes of arrangement.
The schemes result in the compromise of US$3.69 billion of New York law governed debt for the Cayman Islands registered parent of the Ocean Rig group and three of its Marshall Islands incorporated subsidiaries.
In a decision that will reassure investors in Cayman Islands investment funds and other vehicles, the Grand Court has shown its willingness to facilitate the investigation of legitimate concerns raised during a voluntary liquidation.1
The decision is the first written ruling on the Court's power to defer the dissolution of a Cayman Islands company in voluntary liquidation under section 151(3) of the Companies Law and also considers the Court's power to bring a voluntary liquidation under the Court's supervision in the context of an investigation into possible wrongdoing.
Re Diffraction Diamonds DMCC [2017] EWHC 1368 (Ch)
This case deals with the English Court’s jurisdiction to wind up foreign companies, on the grounds of public interest. While it does not create new law, it is a helpful review of the authorities, particularly Re Titan International Inc [1998] 1 BVLC 102 (“Titan”).
Case Facts