Cayman Insolvency Update: Petitioning For Change?

Despite the absence of a formal restructuring regime, the Courts in Cayman (and latterly by way of the Companies Law) have developed a flexible and pragmatic approach, deploying provisional liquidators to provide breathing space for a company in distress. A recent decision may well limit that ability for many Cayman incorporates.

"China Milk" spilt; tears may follow

In the absence of an equivalent to an administration or Chapter 11 type regime, Cayman companies have often sought "light touch" provisional liquidation orders to give them some safety and latitude while they restructure. The recent decision of the Grand Court in Re China Shanshui Cement Group Limited (unreported, 25 November 2015) however may have reinstated a rather unhelpful roadblock for most Cayman companies seeking protection pending a restructuring.