Insolvency – Bermuda: Law And Practice

1. STATE OF THE RESTRUCTURING MARKET

1.1 Market Trends and Changes

The Bermuda restructuring market has continued to be extremely active over the last 12 months, largely as a result of tightening credit markets and ongoing unsettled economic conditions arising out of the COVID-19 crisis.

There has been a notable increase in creditordriven petitions in which immediate windingup orders are sought, particularly out of Asia. Creditors have seemed more willing to seek the liquidation of companies quickly, appearing less willing to engage in lengthy restructuring negotiations. Examples of such cases include two Hong Kong listed companies, Trinity Limited and Victory City International Holding Limited, which were both wound up on the petitions of major international financial institutions.