Cayman Court Allows Interim Distributions In Saad Liquidation

The Grand Court of the Cayman Islands (the "Court") has sanctioned a proposal enabling the Joint Official Liquidators ("JOLs") of Saad Investments Company Limited ("SICL") to make interim distributions to unsecured creditors, notwithstanding a pending Court of Appeal ("CICA") decision regarding a third-party proprietary claim over the entire liquidation estate.

The judgment, delivered 1 October 2019, sought to strike a balance between the continuing prejudice suffered by admitted creditors in not receiving a distribution, and the prejudice potentially to be suffered by the third-party proprietary claimant should its appeal be successful. In the end, Chief Justice Smellie was satisfied the JOLs had put appropriate measures in place to protect the third-party claimant, and found that it was in the best interests of SICL that the JOLs be authorised to make the interim distributions.