Creditor-Driven Winding Up Regime In Jersey

KEY TAKEAWAYS

• Changes to the Companies Law in 2022 have increased the options available to creditors of insolvent Jersey companies

• A creditor is now able to apply to the Jersey Court to wind up a company a liquidated claim against a Jersey incorporated company for not less than the prescribed amount of £3,000

• This guide sets out the key features of the Jersey creditor-driven winding up regime

The right of a creditor who is owed a liquidated debt that is not subject to a bona fide and substantial dispute to have the debtor company wound up if that debt is not paid in accordance with its terms is fundamental to the proper functioning of any modern financial system.