Beware the costs of preparatory compliance with liquidators' disclosure orders

The liquidators of two Cayman Island companies obtained orders under s 195(3) of the Bermudan Companies Act 1981 for PwC, as the companies' auditor, to provide information and documents to the liquidators. PwC decided to appeal but, in the meantime, did US$250,000 of preparatory work necessary to enable compliance, if required, with the orders.

As a result of the appeal, both orders were set aside. In PricewaterhouseCoopers v SAAD Investments Co Ltd & Anor (Bermuda) PwC applied to recover from the liquidators the costs of preparing to comply with the orders.

Filed under:
Bermuda, Cayman Islands, New Zealand, Insolvency & Restructuring, Litigation, Buddle Findlay
Authors:
Myles O'Brien , Susan Rowe , Bridie McKinnon , Scott Abel , Kelly Paterson , Willie Palmer , Scott Barker , David Perry , Peter Niven , Jan Etwell
Location:
Bermuda, Cayman Islands, New Zealand
Firm:
Buddle Findlay
Ability of foreign liquidators to require production of documents considered by Bermuda CA

PricewaterhouseCoopers (PwC) v Saad Investments Company Limited (SICL) and Singularis Holdings Ltd (SHL)involved an application by PwC for the setting aside of orders made by the Supreme Court of Bermuda in favour of the liquidators that required the production of documents relating to SICL and SHL.  Included among the grounds on which PwC relied to set aside the order were that:

Filed under:
Bermuda, United Kingdom, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Buddle Findlay
Authors:
David Perry , Scott Barker , Willie Palmer
Location:
Bermuda, United Kingdom
Firm:
Buddle Findlay