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ARTICLE · 09 FEBRUARY 2023

Under Pressure: Key Considerations And Practical Tips For BVI Companies Approaching Insolvency

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Inflationary pressures and increasing interest rates are expected to continue to have a negative impact on the global economy during 2023. In this article we consider restructuring...

British Virgin IslandsInsolvency/Bankruptcy/Re-Structuring
Rachael Pape
Rachael Pape
Matthew Brown
Matthew Brown
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Inflationary pressures and increasing interest rates are expected to continue to have a negative impact on the global economy during 2023. In this article we consider restructuring options under BVI law available to companies in or approaching financial difficulties, when a BVI company will be considered to be insolvent, the duties of directors of financially distressed or insolvent BVI companies and practical steps and considerations for directors where a BVI company may be approaching insolvency.

Restructuring Options and Creditor Arrangements

One of the key concerns arising from pressures on a business's cash flow is the inability of companies to service their debt in a timely manner and the desire to avoid distressed asset sales/enforcement of security by creditors. There are a number of practical steps which may be taken in such circumstances including:

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