With the States of Guernsey's approval yesterday of the
Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance,
2020 (the "Ordinance"), Guernsey took a step towards
further enhancing its reputation as a robust jurisdiction for
restructuring and insolvency.
While the previous regime served its purpose, supported by
Guernsey's adaptable and practical judicial system, the new
Ordinance should be welcomed by businesses and practitioners alike
when it comes into force likely in the first quarter of 2020. After
an extensive period of scrutiny and consultation, it had been
recognised that there were several areas in which Guernsey's
insolvency laws needed reform, including:
- The creation of a method to end an administration by
dissolution. Until now, a liquidation has been needed if a company
could not be rescued;
