Where a potential judgment debtor in "onshore"
proceedings threatens to dissipate its assets, the plaintiff may
face a Pyrrhic victory with no assets against which to enforce its
judgment. Where the defendant is a Cayman company or has assets in
Cayman, the Cayman Court has a statutory jurisdiction to grant a
freezing injunction in aid of those foreign proceedings, which can
extend to the worldwide assets of the defendant.
An application may be made ex parte on short notice to
the defendant or, in exceptional cases, with no notice. The Cayman
Court also has the jurisdiction to appoint receivers in support of
the injunction where there is a need to ensure the proper
management, preservation or exploitation of the defendant's
assets.
