The new Cayman Islands restructuring officer regime will mean that debtors seeking to restructure their debt, with a stay on unsecured creditor action in the Cayman Islands, will be able to do so without needing to file a winding up petition. Having to file a winding up petition in order to restructure was counterintuitive and unpalatable for many debtors. The new regime provides for a global stay on unsecured creditor action, outside of the winding up regime – the debtor will apply to the Court for the appointment of restructuring officers. The reforms also open up the potential for Cayman Islands schemes of arrangement to compromise debt governed by English law.
Given the current focus on the restructuring of debt of groups with an underlying business in the People's Republic of China and the role of Cayman Islands entities as issuers of much of this debt, the new regime is likely to be put to use quickly. More generally, in light of global economic pressures and volatility, the new proceeding will provide another important option in the cross-border restructuring tool kit.
Caroline Moran and Nick Herrod spearheaded these reforms. Caroline and Nick have been integrally involved in working with industry, the judiciary and Government over the past few years to deliver the new regime. As such Caroline and Nick are in a unique position to give an insight into the new law and how it is likely working in practice.
Caroline Moran - Maples Group - Caroline is co-head of Maples and Calder's Dispute Resolution & Insolvency team in the Maples Group's Cayman Islands office. Caroline advises on all aspects of cross-border and domestic insolvency and restructuring issues, in particular contentious and non-contentious restructurings, liquidations, schemes of arrangement and fund wind downs. She advises debtors and key stakeholders in financially distressed circumstances, including banks, funds, bondholders, directors, investors and insolvency practitioners. Caroline is actively involved in IWIRC, is a member of III and has been part of the delegation to Working Group V the United Nations, inputting into the model insolvency laws. Caroline is a regular speaker at industry conferences including Insol, C5 and Marine Money and will be speaking on the topic of Recovery of Assets in the Digital Age at the INSOL Conference in June.
Nick Herrod - Maples Group - Nick is of counsel at Maples and Calder's Dispute Resolution & Insolvency team in the Maples Group's Cayman Islands office. Nick was previously a member of Allen & Overy LLPs' global restructuring team and remains a member of the English ILA's technical committee. While practising in England, Nick advised the UK Government on wide ranging aspects of insolvency law reform, particularly in relation to cross-border insolvency and restructuring matters. His work in the Cayman Islands ranges from new money deals, insolvency opinions on complex financial structures, bankruptcy remoteness planning, distressed and contentious structured finance scenarios, security enforcement and high value international insolvencies and restructurings. Nick is a regular speaker on the London and Cayman Islands insolvency conference circuit. Nick is also BVI and Irish law qualified allowing his vast breadth and depth of restructuring and insolvency experience and knowledge to be utilised across the firm's insolvency and restructuring matters.
We would like to thank GLAS as princpal sponsor of the ILA and Maples Group as generous sponsor of this free webinar.