As we turn to a new year, my wife and I like to reminisce about our best days and milestones of the prior year (for 2023, it was a huge celebration with our best friends for my wife’s birthday, an epic bike ride with our kids on a beautiful day in Kiawah, and seeing “the Boss” in concert in Greensboro). Professionally, I find myself thinking about my friend and mentor, George Cauthen, who reached a milestone and retired from the active practice of law in 2023.
Written by- Kyle Broadhurst, BROADHURST LLC
While the Cayman Court has not yet had the opportunity to rule on the matter, it is highly likely that cryptocurrencies will be treated as property of the company which the liquidators are empowered to collect and which is to be applied in satisfaction of the company’s liabilities.
The Insolvency and Financial Rehabilitation Law came into effect in 2019. The new law added a new cause of action for imposing personal liability on a director or CEO of a corporation in insolvency in respect of damages caused to the corporation and to its creditors, insofar as such directors and officers failed to take action to minimize the scope of the corporation’s insolvency.
As the Grand Court of the Cayman Islands reopens for 2024, we reflect on 2023 and some of the large-scale cross-border insolvency and restructuring proceedings, and complex commercial disputes dealt with in the jurisdiction over the past year.
Statistics from the Grand Court
There were approximately 1,579 filings made in the Grand Court, which can be broken down as follows:
The last 12 months have seen a steady increase in restructuring and stressed or distressed financing transactions in the European market across a range of sectors, including tech, real estate, hospitality, manufacturing and retail.
“Bankruptcy provides a valuable and desirable venue for the resolution of [mass tort] disputes” by:
一，问题的提出 随着近年来供给侧结构性改革以及优化营商环境指标相关措施的推进，企业破 产案件数量逐年增加。以上海破产法庭为例，2020 年全年立案受理破产、公司 强制清算、衍生诉讼等各类案件共计 1567 件，同比增长 32.7%；2021 年全年立 案受理同类案件共计 2381 件，同比增长 51.9%；2022 年全年立案受理同类案件 共计 3412 件，同比增长 43.3%。 但是仅就重整程序而言，上海破产法庭 2020 年共计办结重整成功案件 4 件，盘 活企业资产总价值 14.66 亿元，普通债权平均清偿率 57.5%[1]；2021 年共计办 结重整成功案件 13 件，盘活企业资产总价值 75.6 亿元，普通债权平均清偿率 10.4%[2]；2022 年盘活企业资产 11.3 亿元，普通债权平均清偿率 4.9%[3]。 可以看出，近年来破产案件受案数量呈现爆发性增长的态势，但是重整成功的 案件数量增长率相较于整体破产案件的涨幅来讲并没有显著增加，同时盘活资 产总价值也存在波动，而评判一个重整案件法律效果和社会效果最直观的指标 “普通债权清偿率”呈现出断崖式下降，降幅高达 91.48%。
Subsequent to the High Court’s decision inGalapagos Bidco S.à r.l. v Dr Frank Kebekus [2023] WHC 13931 (Ch) (for more on which see our commentary), the High Court dismissed yet another claim brought by a junior creditor in the context of a senior creditor enforcement.
A perfect storm of rising costs, labour shortages and high interest rates is resulting in an increasing amount of financial distress in the construction sector. What warning signs should lenders look out for? What are the implications under the loan agreement and how can lenders mitigate the risks of insolvent contractors?
Introduction