Bermuda ‘Light-Touch' Provisional Liquidator Restructuring

A bold judicial reimagining of the Court's existing power to appoint a provisional liquidator for asset preservation purposes, Bermuda's 'light-touch' provisional liquidation regime empowers embattled boards to pursue company-driven restructuring with the protection of an interim moratorium on proceedings.

'Light-touch' Provisional Liquidation for Restructuring Purposes

Bermuda has no direct equivalent to the statutory moratorium against creditor action that applies to an insolvent English company in administration pursuant to Schedule B1 to the Insolvency Act 1986, or to an American corporate reorganisation pursuant to Chapter 11 of the United States Bankruptcy Code. This legislative gap has been enthusiastically filled by the Bermuda Supreme Court's interpretation of the power to appoint liquidators under section 170 of the Companies Act 1981 (the "Act") to include the power to appoint provisional liquidators for restructuring purposes. For almost twenty years