{{ languageVal }}
- English
-
Legal Services
Fiduciary Services
- AIFM & UCITS Management Company Services
- Accounting, Tax & Agency Services
- Commodity Pool Operator Services
- Company Secretarial & Board Support Services
- Conflict Review & Advisory Services
- Directorship Services
- Facilities Agent Services
- Permanent Office Solutions
- Power of Attorney & Proxy Agent Services
- Private Client Services
- Trustee Services
Fund Services
Regulatory & Compliance
-
Americas and Caribbean
Europe
-
PUT YOUR CAREER INTO GEAR
-
Maples Group Moves to New London Office with a focus on Clients, People and Collaboration
24 Apr 2024Maples Group Sponsors Rugby Club Luxembourg, Fostering Shared Values of Excellence, Teamwork, and Community
23 Apr 2024Maples Group Recognised as Offshore Firm of the Year Including Six Standout Asia Deals of the Year
18 Apr 2024Maples Group Launches UK Liquidations Services
10 Apr 2024 -
ICLG Aviation Law 2024: Cayman Islands
11 Apr 2024
Analysis & Insights
Cayman Islands Schemes of Arrangement: Business as Usual
05 Aug 2019
The Cayman Islands Court recently sanctioned the China Agrotech scheme which (save for the scheme requiring conditional sanction) is a reasonably standard insolvent creditor scheme and parallel Hong Kong scheme. As is common, the scheme's terms included condition precedent.
Some legal commentary has suggested that such a scheme is novel or landmark. This is not the case. For decades it has been entirely standard for Cayman Islands schemes to contain conditions precedent which may not all have been satisfied at the time of the sanction hearing. Recent examples include Ocean Rig and Schahin, none of which required conditional sanction. The anomalous aspect of this scheme was the need for conditional sanction. One potential reason for the Cayman Islands Court's approach was the scheme's unusual drafting, which rather than saying the relevant operative provisions took effect upon the satisfaction of the condition precedent, stated that the scheme itself took effect upon the satisfaction of the condition precedent.
Commenting on the case, senior restructuring expert, Nick Herrod added, "The approach of providing conditional sanction could be perceived to make Cayman Islands schemes less practical than they should be. This is not the case; as in England, a conditional scheme is perfectly capable of being sanctioned by the Court in one hit. We would expect this to remain the case going forward; with the China Agrotech scheme being an outlier."
Some legal commentary has suggested that such a scheme is novel or landmark. This is not the case. For decades it has been entirely standard for Cayman Islands schemes to contain conditions precedent which may not all have been satisfied at the time of the sanction hearing. Recent examples include Ocean Rig and Schahin, none of which required conditional sanction. The anomalous aspect of this scheme was the need for conditional sanction. One potential reason for the Cayman Islands Court's approach was the scheme's unusual drafting, which rather than saying the relevant operative provisions took effect upon the satisfaction of the condition precedent, stated that the scheme itself took effect upon the satisfaction of the condition precedent.
Commenting on the case, senior restructuring expert, Nick Herrod added, "The approach of providing conditional sanction could be perceived to make Cayman Islands schemes less practical than they should be. This is not the case; as in England, a conditional scheme is perfectly capable of being sanctioned by the Court in one hit. We would expect this to remain the case going forward; with the China Agrotech scheme being an outlier."
Related Services
Dispute Resolution & Insolvency
Advising on the laws of the BVI, the Cayman Islands and Ireland, our global Dispute Resolution & Insolvency team provides expert legal advice on cross-border litigation and contentious and non-contentious restructuring. We offer a broad range of dispute resolution and insolvency services, bringing an unrivalled depth of experience to each dispute and ensuring that you receive fast, accurate and pragmatic advice.
Related Contacts
Related Articles
-
Analysis & Insights
Debtwire - Profile of notable women in Restructuring featuring Kat Burke
11 Mar 2024
-
-
-
Industry Updates
Irish Credit Servicing - Transposition of the EU Credit Servicing Directive
18 Jan 2024
-
Industry Updates
Cayman Islands Restructuring Officers: Key Guidance from the Court
15 Jan 2024
-
Technical Publications
Chambers Global Practice Guide to Insolvency 2023: British Virgin Islands
02 Jan 2024
-
Industry Updates
Business as Usual for Creditors Winding Up Petitions in the Cayman Islands
22 Dec 2023
-