Executive Summary
In February 2020 the British Virgin Islands Commercial Court
(the "BVI Court") sanctioned a creditor
scheme of arrangement, which was part of a much larger cross
boarder restructuring. This scheme of arrangement, which as a
creditor scheme was itself rare for the BVI, was preceded by the
BVI's first ever "soft touch" provisional liquidation
(in linked proceedings), which commenced in December 2018.
The proceedings in the BVI utilised provisions of the BVI
Business Companies Act 2004 (the "BC
Act") as well as the BVI Insolvency Act, 2003 (the
"IA"). In total, 11 BVI companies were
restructured, by way of the ground breaking "soft touch"
provisional liquidation in the BVI, a simultaneous judicial
reorganisation in the Brazilian courts, a BVI Scheme of
Arrangement, as well as ancillary relief for recognition and
protection under Chapter 15 of the US Bankruptcy Code.
