ARTICLE · 06 NOVEMBER 2017

Bermuda Insolvency Law In 60 Seconds

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Insolvency law in Bermuda is principally regulated by the Companies Act 1981 and the Companies Rules 1982, supplemented by a wide body of case law.

BermudaInsolvency/Bankruptcy/Re-Structuring

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Insolvency law in Bermuda is principally regulated by the Companies Act 1981 and the Companies (Winding-Up) Rules 1982, supplemented by a wide body of case law. The following guidance is summary only.

1. Under Bermuda law a company may be wound up on the basis of insolvency if it is unable to pay its debts as they fall due. A company is treated as unable to pay its debts if it fails to satisfy a valid statutory demand, execution on a judgment is returned wholly or partly unsatisfied, or it is otherwise proved to the satisfaction of the Court that the company is unable to pay its debt. The Courts are also prepared to wind up a company if it is shown that the value of company's liabilities is greater than the value of its assets.

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