We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
The BVI High Court, Commercial Division has, in a first for the
jurisdiction, appointed "light-touch" joint provisional
liquidators ("RPLs") to BVI incorporated
companies for the purpose of pursuing a debt restructuring. This is
a significant departure from the traditionally held view that
provisional liquidators could only be appointed in the BVI as an
interim measure to protect a company's assets pending the
hearing of the winding up petition.
The availability of RPLs in the BVI provides a BVI company
and/or a foreign company with a connection with the BVI with the
ability to obtain protection from actions by individual creditors
(although secured creditors remain able to enforce) while
formulating and/or implementing a restructuring plan. As the RPL
procedure is usually one of debtor-in-possession, the directors
will ordinarily remain in day to day control of the company,
subject to the supervision and input of the RPLs. The appointment
of RPLs can therefore be used as a method to obtain a restructuring
moratorium whilst leaving management in place.
This is an important development in BVI law, giving the BVI
similar restructuring tools as a number of other offshore
jurisdictions, including Bermuda and the Cayman Islands. These
tools make the BVI a more attractive restructuring jurisdiction.
Notably RPLs can be used in support of foreign restructuring
proceedings (as was the case here – with the restructuring
being driven from Brazil) or to drive the restructuring from the
BVI.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
A Jersey Royal Court ruling has confirmed that secured claims in the Jersey bankruptcy procedure known as dégrèvement are limited to the maximum amount on the face of the document that creates
The BVI Commercial Court has for the first time appointed what are colloquially referred to as "soft touch" provisional liquidators for the purpose of a restructuring in respect of 6 BVI companies.
In a recent case before the Grand Court of the Cayman Islands, Walkers successfully acted for the Joint Official Liquidators of China Branding Group Limited (in Official Liquidation) (the "JOLs") in respect of a creditor's appeal against the JOLs' partial rejection of his proof of debt claim.