The ongoing Global Pandemic has presented financial challenges to certain industries, which have seen their markets eroded. This has resulted in increased re-scheduling of debt repayments as well as a larger number of defaults, with lenders accelerating their loans and enforcing security. In particular, there was an increase in enforcement of security over the shares of BVI company borrowers and guarantors during 2021. We expect this trend to continue during 2022 for as long as the pandemic prevents any significant recovery in markets. The BVI is a creditor friendly jurisdiction for enforcement of security over shares in a BVI company, with the typical security agreement facilitating a "self-help" enforcement that occurs without the need for a court order. This continues to be particularly attractive to creditors looking for relatively quick enforcement strategies.
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