This article discusses the defining features of Bermuda’s insolvency landscape and the primary insolvency and rescue procedures available under Bermuda law, including compulsory liquidations, provisional liquidations and schemes of arrangements. The case of Chishti v Afiniti Ltd is presented as a recent example of a company successfully availing itself of a restructuring plan through the use of ‘light touch’ provisional liquidation.
Despite meeting statutory jurisdictional requirements under Part 26A of the Companies Act 2006, the High Court declined to exercise its discretion in favour of sanctioning Waldorf Production UK Plc’s restructuring plan in August 2025due to concerns about fair allocation of value and lack of meaningful engagement with unsecured creditors.
Welcome to the final edition of Buddle Findlay's insolvency and restructuring update for 2025. As we head towards the silly season and a well-deserved break for many, it's an opportunity to reflect on what has been a very busy year in the insolvency and restructuring space.
The Judicial Committee of the Privy Council in CL Financial Ltd (in Liquidation)[1] has provided helpful guidance on applications for approving liquidators’ remuneration.
Bankruptcy Petition Dismissed: Court Reaffirms Low Threshold for Demonstrating Debtor’s Intention to Arbitrate In Resisting a Bankruptcy Petition
Introduction
A knowing breach of the payment prohibition under insolvency law cannot be inferred from a breach of the obligation to file for insolvency.
The collapse of The Lion Electric Company and its affiliates (Lion Electric) has attracted considerable attention as a sign of potential trouble in Québec’s manufacturing and electric vehicle sectors1.