Cayman Islands: Insolvency/Bankruptcy

The Court of Appeal in Re PetroSaudi International has settled a long-standing debate by confirming that Cayman Islands courts have jurisdiction to order just and equitable winding up where there is a need for investigation into a company's affairs. This landmark appellate decision establishes clear parameters for when the investigative ground can be invoked, requiring proper standing and evidence that unsecured creditors would benefit.

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 Rules convert key parts of CIMA’s non-binding Guidance Notes into enforceable requirements; breaches may result in fines or other regulatory action. They apply to all CIMA-registered or licensed financial service providers...

Explore the regulatory landscape for foreign lenders operating in this jurisdiction, examining licensing requirements, security arrangements, and enforcement mechanisms.

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.

The Cayman Islands has long occupied a central position in global finance, and with that prominence has come increased scrutiny of how the jurisdiction responds when financial wrongdoing occurs.

A formal written contract is not necessary to create an enforceable debt obligation. However, such an obligation must be created as a matter of contract or deed.

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.

The new guides provide the latest legal information on litigation funding, initiating a lawsuit, pre-trial proceedings, discovery, injunctive relief, trials and hearings...