Cross-Border Restructurings - Ocean Rig Schemes Sanctioned

In a ground-breaking decision for the Cayman Islands as a restructuring centre, the Cayman Islands court has handed down judgment sanctioning four highly complex inter-linked schemes of arrangement.

The schemes result in the compromise of US$3.69 billion of New York law governed debt for the Cayman Islands registered parent of the Ocean Rig group and three of its Marshall Islands incorporated subsidiaries.

The restructuring is the largest implemented through Cayman Islands schemes of arrangement and contains a number of Cayman Islands firsts, novel features and important developments in the law.

• The Cayman Islands court confirms jurisdiction to scheme foreign incorporated companies – this widens the circumstances in which a Cayman Islands scheme may be available considerably