There are two principal regimes for corporate insolvency
in Jersey: désastre and winding-up. This Briefing seeks to
highlight the major features of each and some of the differences
between the two.
Désastre
The law of désastre arose out of the common law of
Jersey, although since 1991 the common law has only applied to the
extent that express provision is not made in the Bankruptcy
(Désastre) (Jersey) Law 1990 (the "Désastre
Law").
Who may commence the process?
A declaration en désastre may be sought from the Royal
Court by a creditor, the debtor company itself or the Jersey
Financial Services Commission (the "JFSC").
Creditor: a single creditor with a liquidated
monetary claim in excess of a minimum figure (currently
£3,000), to which there is no reasonably arguable defence,
may seek to place a company en désastre. The company must be
insolvent on the cash flow test, although it must have realisable
assets. If the company does not pay an undisputed debt,
