Guide To Cayman Islands Insolvency

The insolvency law of the Cayman Islands, which is primarily embodied in the Companies Law and Companies Winding-Up Rules, was the subject of a major overhaul in 2009, bringing the insolvency regime up to date, introducing some new concepts, improving the options available to creditors and formalizing the system for cross-border co-operation in insolvency proceedings. The regime bears a number of similarities with the insolvency regimes of the many jurisdictions whose law is based on that of England and Wales, but also some important differences.

The Cayman Islands has long been regarded as, and continues to be, a creditor-friendly jurisdiction. Cayman insolvency law follows a universalist, rather than territorial approach to creditor rights, in that creditors are not treated differently based on whether they are based in Cayman or elsewhere. The territory has been a progressive proponent of the principles of international co-operation and comity that underpin