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Guide to restructuring and corporate recovery
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 29 October 2020

This article answers FAQs on restructuring and corporate recovery options available in the Cayman Islands, with respect to domestic procedures, cross-border procedures, creditors, avoidance transactions, contributions to liquidation estates and officer liability.

Snapshot: bringing claims against Cayman entities subject to insolvency processes
Ogier
  • Insolvency & Restructuring
  • Cayman Islands
  • 23 October 2020

To ensure the orderly and collective resolution of a company's affairs, the Companies Law imposes a moratorium on commencing or proceeding with any suit, action or other proceedings against the company once liquidators are appointed by the court (including on a provisional basis). Once these officeholders are appointed, proceedings can be commenced or proceeded with against the company in question only with the leave of the Grand Court, subject to such terms as the court may impose.

Snapshot: bringing claims against Cayman entities subject to insolvency processes
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 22 October 2020

To ensure the orderly and collective resolution of a company's affairs, the Companies Law imposes a moratorium on commencing or proceeding with any suit, action or other proceedings against the company once liquidators are appointed by the court (including on a provisional basis). Once these officeholders are appointed, proceedings can be commenced or proceeded with against the company in question only with the leave of the Grand Court, subject to such terms as the court may impose.

Q&A: earning residency through business investment
Ogier
  • Employment & Immigration
  • Cayman Islands
  • 21 October 2020

The Cayman Islands has two residency by business investment programmes: the Certificate of Direct Investment and the Residency Certificate (Substantial Business Presence). This Q&A provides insight into each programme, including whether applicants can eventually apply for a Cayman passport, how many applicants typically apply for residency and the associated costs.

Q&A: earning residency through business investment
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 15 October 2020

The Cayman Islands has two residency by business investment programmes: the Certificate of Direct Investment and the Residency Certificate (Substantial Business Presence). This Q&A provides insight into each programme, including whether applicants can eventually apply for a Cayman passport, how many applicants typically apply for residency and the associated costs.

Court of Appeal enforces foreign arbitral award in favour of Brazilian airline
Ogier
  • Arbitration & ADR
  • Cayman Islands
  • 15 October 2020

The Court of Appeal has overturned an earlier decision of the Grand Court, thereby allowing the enforcement of an International Chamber of Commerce arbitral award issued in favour of a Brazilian airline. The decision raises important and difficult issues relating to the enforcement of foreign arbitral awards which are the subject of robust challenge before the courts of supervisory jurisdiction.

Court of Appeal enforces foreign arbitral award in favour of Brazilian airline
Ogier
  • Litigation
  • Cayman Islands
  • 13 October 2020

The Court of Appeal has overturned an earlier decision of the Grand Court, thereby allowing the enforcement of an International Chamber of Commerce arbitral award issued in favour of a Brazilian airline. The decision raises important and difficult issues relating to the enforcement of foreign arbitral awards which are the subject of robust challenge before the courts of supervisory jurisdiction.

Court of Appeal enforces foreign arbitral award in favour of Brazilian airline
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 08 October 2020

The Court of Appeal has overturned an earlier decision of the Grand Court, thereby allowing the enforcement of an International Chamber of Commerce arbitral award issued in favour of a Brazilian airline. The decision raises important and difficult issues relating to the enforcement of foreign arbitral awards which are the subject of robust challenge before the courts of supervisory jurisdiction.

Update on economic substance
Ogier
  • Corporate Tax
  • Cayman Islands
  • 02 October 2020

The Cayman Islands has comprehensive economic substance legislation, under which in-scope entities that carry on particular activities must demonstrate economic substance in the Cayman Islands. The Tax Information Authority, which is responsible for monitoring and enforcing the substance requirements in the Cayman Islands, recently published guidance on economic substance for geographically mobile activities.

Update on economic substance
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 01 October 2020

The Cayman Islands has comprehensive economic substance legislation, under which in-scope entities that carry on particular activities must demonstrate economic substance in the Cayman Islands. The Tax Information Authority, which is responsible for monitoring and enforcing the substance requirements in the Cayman Islands, recently published guidance on economic substance for geographically mobile activities.

Cayman injunctions in aid of foreign proceedings
Ogier
  • Litigation
  • Cayman Islands
  • 29 September 2020

Where a potential judgment debtor in onshore proceedings threatens to dissipate its assets, the plaintiff may face a pyrrhic victory with no assets against which to enforce its judgment. Where the defendant is a Cayman company or has assets in the Cayman Islands, the Cayman court has statutory jurisdiction to grant a freezing injunction in aid of those foreign proceedings, which can extend to the worldwide assets of the defendant.

Cayman injunctions in aid of foreign proceedings
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 24 September 2020

Where a potential judgment debtor in onshore proceedings threatens to dissipate its assets, the plaintiff may face a pyrrhic victory with no assets against which to enforce its judgment. Where the defendant is a Cayman company or has assets in the Cayman Islands, the Cayman court has statutory jurisdiction to grant a freezing injunction in aid of those foreign proceedings, which can extend to the worldwide assets of the defendant.

CIMA releases updated Rule and Statement of Guidance – Cybersecurity for Regulated Entities
  • Tech, Data, Telecoms & Media
  • Cayman Islands
  • 18 September 2020

The Cayman Islands Monetary Authority (CIMA) has updated its Rule and Statement of Guidance – Cybersecurity for Regulated Entities following feedback received during a private sector consultation. The rule, which sets out CIMA's requirements in relation to the management of cybersecurity risks, is a clear and precise directive that creates binding obligations, the breach of which may lead to a fine or regulatory action being taken by CIMA.

CIMA releases updated Rule and Statement of Guidance – Cybersecurity for Regulated Entities
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 17 September 2020

The Cayman Islands Monetary Authority (CIMA) has updated its Rule and Statement of Guidance – Cybersecurity for Regulated Entities following feedback received during a private sector consultation. The rule, which sets out CIMA's requirements in relation to the management of cybersecurity risks, is a clear and precise directive that creates binding obligations, the breach of which may lead to a fine or regulatory action being taken by CIMA.

Probate practice for non-Cayman domiciliaries
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 10 September 2020

When a non-Cayman domiciliary dies owning Cayman assets, such as shares in a Cayman Islands company and interests in Cayman Islands funds, the transmission of such Cayman estate is governed by Cayman Islands law and a grant of representation issued by the Grand Court is usually required. This article deals with the procedures and documentation required to secure a Cayman grant for the estate of a non-Cayman domiciliary and highlights the pitfalls of which practitioners should be mindful.

Restructuring – current state of play
Ogier
  • Insolvency & Restructuring
  • Cayman Islands
  • 04 September 2020

At the recent Chambers Economic Forum, the Cayman government announced its intention to bring in a much-anticipated new regime governing corporate restructuring by the end of 2020. Until then, with the COVID-19 pandemic pushing many groups into the zone of insolvency, a number of considerations remain relevant to structures involving a Cayman entity.

Restructuring – current state of play
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 03 September 2020

At the recent Chambers Economic Forum, the Cayman government announced its intention to bring in a much-anticipated new regime governing corporate restructuring by the end of 2020. Until then, with the COVID-19 pandemic pushing many groups into the zone of insolvency, a number of considerations remain relevant to structures involving a Cayman entity.

Court of Appeal re-examines master-feeder redemption procedures
Ogier
  • Corporate Finance/M&A
  • Cayman Islands
  • 26 August 2020

The Court of Appeal recently reiterated the importance of following the natural and ordinary meaning of a fund's articles in order to ensure that redemptions are effective. This is particularly important in the context of a master-feeder fund structure. Although the decision is consistent with longstanding authority, it does highlight the importance of ensuring that the redemption procedures set out in a master fund's articles are strictly adhered to as a matter of practice.

Court of Appeal re-examines master-feeder redemption procedures
  • Litigation
  • Cayman Islands
  • 25 August 2020

The Court of Appeal recently reiterated the importance of following the natural and ordinary meaning of a fund's articles in order to ensure that redemptions are effective. This is particularly important in the context of a master-feeder fund structure. Although the decision is consistent with longstanding authority, it does highlight the importance of ensuring that the redemption procedures set out in a master fund's articles are strictly adhered to as a matter of practice.

Court of Appeal re-examines master-feeder redemption procedures
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 20 August 2020

The Court of Appeal recently reiterated the importance of following the natural and ordinary meaning of a fund's articles in order to ensure that redemptions are effective. This is particularly important in the context of a master-feeder fund structure. Although the decision is consistent with longstanding authority, it does highlight the importance of ensuring that the redemption procedures set out in a master fund's articles are strictly adhered to as a matter of practice.