Obtaining A Moratorium In Support Of A Cayman Islands Restructuring

In CHC Group Ltd ("CHC") the Cayman Islands Grand Court has determined that, in certain circumstances, directors of a company can commence Cayman Islands restructuring provisional liquidation proceedings ("RPL Proceedings") without the need for a shareholders' resolution or authorisation in the company's articles of association.  This decision allows greater access by companies to the Cayman Islands restructuring regime by confirming a practical solution to the so-called Emmadart issue. 

The Cayman Islands Restructuring Regime and the Emmadart Issue

The opening of RPL Proceedings prevents creditors from commencing legal proceedings against the company in the Cayman Islands.  The moratorium does not, however, prevent secured creditors from enforcing their security.  RPL Proceedings therefore grant the company a breathing space within which to negotiate and implement a restructuring with its creditors (either by way of a Cayman Islands scheme of arrangement or