Jersey: Insolvency/Bankruptcy

Jersey's Companies Law has been amended to introduce administration, a corporate rescue process that enables restructuring of viable businesses while preserving secured creditor rights. This comprehensive modernisation provides Jersey with its first true rescue mechanism, positioning it alongside other leading restructuring jurisdictions and offering an alternative to the previously necessary practice of passporting companies into UK administration.

The Companies (Jersey) Law 1991 has undergone significant amendments to strengthen Jersey's position as a leading international financial centre. These changes introduce enhanced flexibility in share capital management, streamlined corporate governance procedures, and modernised insolvency frameworks, all designed to provide greater clarity and efficiency for companies, investors and advisers operating in this jurisdiction.

The UK Supreme Court has overturned a Court of Appeal decision, ruling that unpaid foreign judgments can support bankruptcy petitions in England and Wales without prior recognition. This landmark judgment clarifies cross-border debt recovery procedures and aligns the English approach more closely with Jersey's position on enforcing foreign judgments through insolvency proceedings.

The Royal Court has the power to sanction a liquidator's proposed distribution model, subrogation is part of Jersey law and a liquidator must give effect to a netting agreement.

A secured creditor with a hypothec (charge) over a specific immovable property can enforce against that property without having to put the debtor through a full-blown bankruptcy process.

In the Matter of Restore Builders En Désastre is the first reported wrongful trading case to come before the Royal Court of Jersey. Under Article 44 of the Bankruptcy (Desastre) (Jersey)...

In this guide to lending and secured finance in Jersey, lawyers from our Banking and Finance practice explore the following topics: guarantees; collateral security; financial assistance...

As we pass the anniversary of the introduction of legislation that allowed creditors of a Jersey company to commence

The jurisdiction to wind up a company under the provisions of article 155 of the Companies (Jersey) Law 1991 is extremely useful precisely because it is so flexible.