‘Restructuring’ Restructured: Cayman’s New Insolvency Regime

In the current economic circumstances the modern trend among insolvency professionals to avoid the term 'insolvency' in favour of the more optimistic 'restructuring' may have a ring of Orwellian doublespeak about it. Call it what you will, the system in the Cayman Islands for dealing with companies that cannot pay their debts has itself been through a restructuring. After several years' work by various committees, the Law Reform Commission and the Government, a complete overhaul of this critical area of law came into force on 1 March 2009.

The changes comprise a replacement of Part V of the Companies Law dealing with the winding up of Cayman Islands companies, and the introduction of new rules and regulations, which introduce specific Cayman rules where previously United Kingdom rules were used, regulate areas not previously regulated, or implement newly-introduced concepts. At the same time, a new Part XVI has been introduced. That Part, and the corresponding new