Cayman Islands: Insolvency/Bankruptcy

The Cayman and Hong Kong courts have delivered parallel rulings in Re Ourgame International Holdings Limited that fundamentally reshape how liquidators must approach applications for powers and cross-border recognition. These decisions establish that courts will scrutinize each requested power individually, requiring specific justification and evidence rather than granting blanket authority. What does this mean for practitioners seeking to make Cayman liquidations effective across multiple jurisdictions?

The Cayman Islands Grand Court has clarified when supervision orders can be granted for companies in voluntary liquidation, even when existing shareholder petitions remain unresolved.

If the Court is to accede to an application to restrain a winding-up petition, the company must establish prima facie on the evidence that to do so would be an abuse of process.