Cayman Islands Antecedent Transactions

Many businesses continue to experience unprecedented pressure on their cash flow given, among other things, the continued fall-out from the global pandemic, the war in Ukraine, the cost of living crisis, rising interest rates, the end of cheap debt and the expected global downturn.

To mitigate their exposure to personal liability, it's important that directors of insolvent companies or companies in the zone of insolvency comply with their duties to act in the best interests of the company as a whole. This includes the interests of creditors as a whole.

For helpful background, read our previous article on the UK Supreme Court's decision in BTI v Sequana which confirmed how directors' duties ought to be applied when a company is in the zone of insolvency.