Vol 19 (2022) - Issue 4

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The Cayman Islands Restructuring Regime: A New Dawn?

Synopsis
The Cayman Islands restructuring regime is poised to undergo a significant development that will allow companies to explore restructurings under the supervision of a Court-appointed company restructuring officer CRO), rather than under a provisional liquidation proceeding which is the usual approach currently.
The change is expected to make it easier for companies to obtain breathing room to explore a restructuring with the protection of a moratorium on claims compared to the current regime, and is designed to be more userfriendly than the current regime. Importantly, the current requirement for a winding up petition to be issued against the company to commence a provisional liquidation proceeding will not apply for the appointment of CROs, and companies themselves will be able to bring the application for CROs to be appointed.