Vol 20 (2023) - Issue 4

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The Restructuring Officer Regime in the Cayman Islands: The Grand Court Showcasing Its Flexibility to Support Cross-Border Restructuring Processes

Synopsis
The Cayman Islands introduced the restructuring officer regime into the Companies Act (as revised) (the 'Companies Act') on 31 August 2022. The restructuring officer regime allows companies to appoint restructuring officers to support a compromise or arrangement with its creditors (or classes of them) pursuant to the Companies Act, the law of a foreign country or by way of consensual restructuring, with the benefit of an automatic and extra-territorial moratorium (as a matter of Cayman Islands law).
Rockley Photonics Holdings Limited (Restructuring Officers Appointed) ('Rockley') is an example of a company that has taken advantage of the restructuring officer regime and was the first to do so in support a foreign restructuring process.
This article examines the key features of the restructuring officer regime and the flexibility of the Grand Court to support cross-border restructuring processes.
Whilst the Grand Court has not yet issued a written judgment in respect of Rockley, this article deals with some of the practical learnings by its Cayman Islands counsel, which may provide useful insight to insolvency practitioners.