Vol 22 (2025) - Issue 2

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Restructuring the Cayman Islands Segregated Portfolio Company: A Closer Look at In re Oakwise Value Fund SPC

Synopsis
The Grand Court has recently had cause to consider the interplay between the Cayman Islands restructuring officer regime, which was introduced following legislative changes in 2022, and the traditional 'light touch' provisional liquidator regime: In re Oakwise Value Fund SPC.
This latest decision clearly indicates that the provisional liquidator restructuring regime, which has survived the introduction of the dedicated restructuring officer regime albeit in modified statutory format, will
continue to feature on the Cayman Islands restructuring landscape in the years ahead. Where a restructuring is needed, and subject to the facts of the case, there appears now to be a choice on offer: should provisional liquidators be appointed, or dedicated restructuring officers? As is explained below, the answer to that question may depend upon whether, in any given restructuring case, there is an additional need for independent management (in the form of provisional liquidators) to be appointed to protect stakeholder interests.
The Oakwise decision also provides a helpful analysis of the application of the winding up jurisdiction of the Cayman Islands court in the context of segregated
portfolio companies, in circumstances where some segregated portfolios are solvent, and some are (or may be)
insolvent.