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ARTICLE · 27 FEBRUARY 2019

Summary Of Creditors' Rights In A Cayman Islands Liquidation

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The Cayman Islands is a well-established insolvency jurisdiction under which all unsecured creditors in an insolvency proceeding must be treated pari passu; that is they share equally

Cayman IslandsFinance and Banking
Rupert Bell
Rupert Bell
Andrew Gibson
Andrew Gibson
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The Cayman Islands is a well-established insolvency jurisdiction under which all unsecured creditors in an insolvency proceeding must be treated pari passu; that is they share equally in the available assets of the company in liquidation in proportion to the debts due to each creditor regardless of their domicile or nationality, subject only to certain limited exceptions.

Laws Relating to Liquidations in the Cayman Islands

The laws of the Cayman Islands relating to corporate insolvency are governed by the Companies Law (2018 Revision) (the "Companies Law") and the Companies Winding Up Rules 2018 (the "CWR").

PARI PASSU Principle And Order Of Distribution

In a winding-up under Cayman Islands law, the property of the company must be applied in satisfaction of its liabilities pari passu (as mentioned above, the principle that all unsecured creditors must share equally in the assets or proceeds of the company in the proportion the debts are due) and thereafter will

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