Restructuring Officers – a new recovery tool for Cayman Islands entities

The long-awaited amendment to Cayman Islands legislation, to provide a specific legal process for the restructuring of entities, will come into force on 31 August 2022.
 
The headlines of the new process are as follows:
● Unless specifically barred from doing so by the Company’s Articles of Association, the application to Court can be made by the Company’s directors
● On lodging the application, a moratorium preventing creditor action against the applicant Company comes into force
● The new process no longer requires a winding-up petition, which avoids the forcing of a square peg Restructuring into a round hole Provisional Liquidation process
 
We at KRyS Global welcome this new legislation, and look forward to assisting companies in need for financial restructuring and that require legal protection to provide the breathing space to ensure that any plan is properly constructed and considered by affected parties.
 
For a more in-depth look at the changes, please see Neil Dempsey’s article at the following URL – https://bit.ly/3SCuCHr
 
If you would like to discuss any aspect of the above, please do not hesitate to contact either Neil Dempsey or Michael Lam in our Cayman office, or your local KRyS Global contact.