The Cayman Islands Government has published the Companies
(Amendment) Bill, 2021 (Bill) which will introduce
welcome amendments to the Companies Act (2021 Revision)
(Act), to facilitate the efficient restructuring
of distressed companies for the benefit of their stakeholders. The
amendments, which are anticipated to be in force in short order,
introduce a formal restructuring procedure for companies outside
the traditional winding up process and under the supervision of a
"restructuring officer" and the Grand Court of the Cayman
Islands (Court).
Restructuring Petition
Under the proposed amendments, a company may petition the Court
for the appointment of a restructuring officer1 on
the grounds that it is or is likely to become unable to pay its
debts and intends to present a compromise or arrangement to its
creditors (Restructuring Petition). The
introduction of a bespoke Restructuring Petition will address some
of the stakeholder concerns arising from the
