Introduction
The first stage in any restructuring by way of a scheme of arrangement in the Cayman Islands involves meetings of such classes of creditors or shareholders (as the case may be) to consider, and if thought fit, approve the terms of the scheme. An application to Court is required for orders to be granted for convening such meetings. If, at these meetings, the requisite statutory majorities are satisfied, the second stage involves obtaining Court sanction for the proposed scheme to become effective.
Bermuda, the British Virgin Islands and the Cayman Islands all have legislation that enables a company to present a scheme of arrangement to restructure its debts.
One of the defining features of a scheme of arrangement carried out under the relevant legislation in each jurisdiction is the ability to cram down dissenting creditors or members (or classes of them, as the case may be) if the requisite statutory majorities are satisfied and Court sanction of the proposed scheme is obtained.
In the final statistics release of this year, the Insolvency Service confirmed that there were 2,466 registered company insolvencies in November 2023 (the December figures will be released early in 2024). Not only was this 21% higher than in the previous November, but 7% higher than the figures in October 2023.
The company insolvencies in November 2023 included:
Muss die Geschäftsführung in der Krise die Belange der Gläubiger stets vorrangig vor den Gesellschafterinteressen („shift of fiduciary duties“) behandeln?
Outcome of the UK government's market consultation and the likely shape and impact of the proposed regime
Introduction
The Supreme Court’s judgment in BTI 2014 LLC v Sequana SA and ors[1] (“Sequana”) is a key decision on the law surrounding directors’ duties.
The High Court was required to consider the Supreme Court’s Sequana judgment in Hunt v Singh (below).
What did we learn from Sequana?
The Government has made a further extension until 31 December 2024 of one of the significant interim measures brought in by the Companies (Miscellaneous Provisions) (Covid-19) Act 2020Opens in new window (the "Covid Act") that permitted companies and co-operatives to hold annual, general and creditor meetings virtually.
I’m reading a U.S. circuit court’s recent bankruptcy opinion that cites Stern v. Marshall, 564 U.S. 462 (2011). I’m startled by that and blurt out (to myself), “Who cites Stern anymore?!” and “Is Stern still a thing?!” and “I thought Stern has been narrowed to nearly nothing?!”
We wrote earlier this year about the rise in insolvencies in the UK at the end of the summer, as persistent inflation, the pain of increasing interest rates, higher energy bills and the end of pandemic measures all took their toll.