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ARTICLE · 22 FEBRUARY 2021

Restructuring & Insolvency Comparative Guide

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Restructuring & Insolvency Comparative Guide for the jurisdiction of Cayman Islands, check out our comparative guides section to compare across multiple countries

Cayman IslandsInsolvency/Bankruptcy/Re-Structuring
Guy Manning
Guy Manning
Guy Cowan
Guy Cowan
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1 Legal framework

1.1 What domestic legislation governs restructuring and insolvency matters in your jurisdiction?

Corporate insolvency in the Cayman Islands is governed by Part V of the Companies Law (2018 Revision) and the Companies Winding-up Rules 2018. Those provisions apply both to the winding up of companies – including certain foreign companies – as defined by the law, and (pursuant to Section 36 of the Exempted Limited Partnership Law (2018 Revision)) to the winding up of Cayman Islands exempted limited partnerships.

The Cayman Islands insolvency regime is based on many of the same underlying principles as the corresponding regime in England and Wales (and other Commonwealth countries), although there are some fundamental differences. These include the test for insolvency, which is assessed solely by reference to cash-flow insolvency.

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