Cayman Insolvency Petitions On The Rise

Insolvency petition filings in the Cayman Islands spiked more than 30 per cent in 2013 when compared with 2012, resulting in the highest number of filings in the past three years, according to Appleby, Hedgeweek reported. The increase reversed a downward trend in the number of petitions filed in 2011 and 2012 that had followed high numbers in 2009 and 2010 driven by the global financial crisis, according to the firm’s Snapshot report on petition filings in the Cayman Islands going back to 2008. “The 2013 Cayman petition statistics suggest that investors are increasingly losing patience with investment managers’ efforts or promises of restructuring and other turnarounds,” says Appleby’s Cayman-based litigation and insolvency partner, Tony Heaver-Wren. “Looking back to 2008, these numbers also offer insight into how the international investment market has reacted to the prevailing economic conditions, at least insofar as it is routed through the Cayman Islands.” The rise in petition filings in Cayman in 2013 suggests that the ramifications of the global financial crisis have not concluded, and the next wave of investor rejections of continued informal wind downs and other manager-led restructurings has begun, according to the report. Read more.