A warm welcome to the Summer edition of Conyers Coverage. The whirlwind that is the Cayman Islands (re)insurance industry continues to blow with gusto! To keep you updated on recent developments, we include various items from our Insurance, Regulatory and Litigation teams, we ponder the possibilities and implications for the Cayman Islands in potentially securing Qualified Jurisdiction status with the NAIC and lots more beyond. We think there’s something for everyone in our latest edition so please dig in.
To NAIC or Not to NAIC?
The £150 million judgment makes clear the full impact of the trading misfeasance offence for directors.
Dissolution is the process of de-registering a company from the company registry at the Department of Business Development (“DBD”). When considering the life cycle of a business operation, the voluntary dissolution by the shareholders appears to be the usual way to end the company’s operations. There are several circumstances that will lead companies to the dissolution and subsequently, the liquidation process. Under Sections 1236 and 1237 of the CCC, a limited company may be dissolved by the following causes:
Business rescue regime in South African law, was established in the Companies Act of 2008 to prevent the liquidation of financially distressed companies and to facilitate their restructuring and revival. Business rescue is not just a legal process, but a lifeline for struggling businesses. The primary goal of business rescue is to maximize the chances of a company's successful recovery while also considering and minimizing any potential harm to stakeholders, who are not just participants, but key contributors to the process.
The judgment of Chief ICC Judge Briggs in Becker (A Bankrupt) v Ford & Ors [2024] EWHC 1001 (Ch) provides a useful summary of the matters to which the court should have regard when considering an application to lift the suspension of a bankrupt’s discharge.
The rescue of a company in business rescue ultimately depends on the implementation of a viable business rescue plan which has received the support of 75% of the creditors of the company. A recent business rescue case of Wescoal Mining (Pty) Ltd Another v Mkhombo NO1 and Other has potentially wide-ranging implications for creditors after business rescue has commenced.
Whilst most people would hope it could never happen to them, in our experience it often can. As such it pays to be prepared.
March, 2024 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS * NCLT: Corporate insolvency resolution process cannot be initiated under Section 7 of IBC based on transfer agreement for purchase of debentures from financial creditors. ⁎ NCLAT: Security for refund of advance amount cannot change the nature of transaction for supply of goods into financial debt.
Die Marktbedingungen werden zunehmen schwieriger, und die Restrukturierungswelle hat Deutschland erreicht. Der Strukturwandel stellt viele deutsche Unternehmen immer wieder vor neue Herausforderungen und erfordert es, Prozesse und Strategien flexibel anzupassen. Parallel erhöht die Zeitenwende im Finanzierungsumfeld den Druck der Geldgeber: Geschäftsmodelle müssen krisenfest gestalten sein, dabei sollen Kosten gesenkt werden - und gleichzeitig ist es erforderlich, sich langfristig zukunftsfähig aufzustellen.
Market conditions are growing increasingly difficult as the restructuring wave reaches Germany. Many German companies are struggling as they are faced with the challenge of structural changes and a necessity to adapt their processes and strategies. At the same time, significant change in the financing sector is adding to the pressure on borrowers: business models must be crisis-proof and costs reduced – while at the same time it is necessary to position oneself for the future.