The statutory demand process is widely used by creditors seeking
to secure payment of their debts. This article discusses the
options for bringing or challenging a statutory demand under Cayman
Islands law.
Introduction
When creditors are owed CI$100 or more by a Cayman Islands
company and have attempted to collect their money without success,
they may resort to sending a statutory demand for payment. This
does not require the Court's involvement and is often used as a
leverage tool by creditors in an effort to collect their debt
quickly. It operates as a form of caution that if a creditor is not
paid within 21 days of the date upon which it is served on the
company, the company will be deemed to be unable to pay its debts
and a winding up petition may be presented against it in accordance
with sections 92(d) and 93(a) of the Companies Law (2020 Revision)
(as amended).
