Bermuda, the British Virgin Islands and the Cayman Islands all
have legislation that enables a company to present a scheme of
arrangement to restructure its debts.
One of the defining features of a scheme of arrangement carried
out under the relevant legislation in each jurisdiction is the
ability to cram down dissenting creditors or members (or classes of
them, as the case may be) if the requisite statutory majorities are
satisfied and Court sanction of the proposed scheme is
obtained.
This mechanism ensures a balance is struck between the differing
views of minority creditors or members (or classes of them, as the
case may be) and the requisite majority (typically a majority in
number representing 75% in value) who desire the implementation of
the restructuring proposals to, one would hope, enable the company
to continue as a going concern.
