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Cayman Islands Chambers & Partners Insolvency Guide 2024

The new Chambers & Partners Cayman Islands Insolvency guide provides the latest legal information on the broad legal framework for insolvencies, the role of creditors, out-of-court and statutory restructuring processes, statutory insolvency and liquidation procedures, cross-border insolvency issues, the duties and liabilities of directors and officers, claims to set aside or annul a transaction.

Adam Crane, Jennifer Colegate, Nicosia Lawson, Shula Sbarro, Nia Statham

Partners Adam Crane and Jennifer Colegate, alongside Senior Associates Nicosia Lawson and Shula Sbarro and Associate Nia Statham have written the Chambers & Partners Cayman Islands 2024 Insolvency Guide covering both:

If you have any further questions on matters mentioned in the guide please reach out to a member of the team.

Introduction

2024 has been a record year for the Cayman Islands, with the Cayman Islands Monetary Authority announcing that as of 15 August 2024, the Cayman Islands had a record-breaking total of 30,038 registered investment funds (including 17,080 private funds and 12,958 mutual funds).

This continues the Cayman Islands’ dominance as a leading investment fund domicile (second to the United States). The Cayman Islands is also recognised as a leading jurisdiction for insurance companies with 700 insurance companies and the second-largest jurisdiction for captive insurance.

According to Cayman Finance, in the digital asset space, the Cayman Islands is home to about 50% of the world’s crypto hedge funds and home to some of the largest (by treasury size) decentralised autonomous organisations (DAOs).

Given the vast number of companies domiciled in the Cayman Islands and the fact that the Cayman Islands is a leading international finance centre, our insolvency professionals and courts grapple with many complex and important issues.

There have been several important decisions in the insolvency and restructuring context in 2024 in the Cayman Islands. We outline several of the key cases addressing important and novel developments in the jurisdiction in this guide, as well as an important decision from the Judicial Committee of the Privy Council in Sian Participation Corp v Halimeda International Ltd [2024] UKPC 16 on appeal from the British Virgin Islands which will have an impact across many offshore jurisdictions including the Cayman Islands.

Included in the guide

  • Law and Practice in the Cayman Islands
    • Including:
      • Legal Framework
      • Types of Insolvency
      • Statutory Officers
      • Types of Creditors
      • Priority Claims in Restructuring and Insolvency Proceedings
      • Secured Creditors
      • Unsecured Creditors
      • Out-of-Court Restructuring Process
      • And more.
  • The Rule in Houldsworth
  • Provisional Liquidation vs Restructuring Officer Regime
  • A First for SPCs: Appointing Restructuring Officers to Some of a Company’s Segregated Portfolios
  • Staying Winding Up Proceedings – Permanently
  • The Interplay Between Arbitration Agreements and Winding Up Proceedings

Read the full Chambers & Partners Cayman Islands Insolvency Guide 2024.

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