Jersey's Insolvency Regime Continues To Develop

The legislative framework applicable to insolvency and restructuring in Jersey has seen significant developments in recent years, with the introduction of the Companies Regulations No 8 2022 (the Regulations).

The Regulations provide additional powers to a company's creditors – firstly, in relation to provisional liquidations (an emergency procedure designed to safeguard the assets of a failing company), and secondly in relation to creditors' winding-ups.

Provisional liquidations

In simple terms, a provisional liquidation is an emergency insolvency procedure whereby – prior to the commencement of formal insolvency proceedings – the court appoints a liquidator to preserve a company's assets in order to maximise any future payments to its creditors. Under the Regulations, and in line with equivalent provisions of English law, a successful applicant must demonstrate that there is a real risk of dissipation of assets, or of the destruction of the books and records