Bermuda: Restructuring & Insolvency

This country-specific Q&A provides an overview of Restructuring & Insolvency laws and regulations applicable in Bermuda.

What forms of security can be granted over immovable and movable property? What formalities are required and what is the impact if such formalities are not complied with?

The following types of security are common in Bermuda security arrangements —

1. Fixed Charge: where property is appropriated to secure a debt, to which the chargee may resort in the event of a default, and the chargor’s ability to deal with the property is restricted;
2. Floating Charge: where the chargor is free to deal with assets comprised in the charge (usually identified by class and can include present and future property) until an event occurs that causes the floating charge to attach to the charged assets;