Insolvency Overhaul Arrives: With More Powers Come More Responsibilities

On 15 January 2020 the States of Guernsey approved the long-awaited final version of the Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020 (the Ordinance). The decision of when the amendments will come into force, and whether they will come into force together or in stages, will rest with the Committee for Economic Development.

The Ordinance will bring some radical changes to both administration and winding up procedure.

Administrators can distribute without court approval

Administrators will no longer have to seek Court approval to distribute property to secured and preferred creditors. Distributions to other creditors will still require an application to the Royal Court, but this change should reduce the cost of administrations.