International

Introduction of a New Restructuring Regime in the Cayman Islands

A new restructuring regime will be available in the Cayman Islands when the amendments to Part V of the Companies Act (2022 Revision) take effect as of August 31, 2022. Among other changes, this new regime will allow a debtor company to restructure under the supervision of a restructuring officer and provide for a worldwide automatic stay. With the present state of the global economy and the likely increase in insolvencies, these amendments will provide a significant benefit to companies seeking to restructure in the Cayman Islands.

Recognition and Assistance of Foreign Insolvency Officeholders in the British Virgin Islands

BVI Liquidator of a Foreign Company

A BVI-licensed insolvency practitioner may be appointed as a liquidator of a foreign company if the court is satisfied that the company has a connection with the BVI and, among other things, the company is insolvent or it has been dissolved or has otherwise ceased to exist under or by virtue of the laws of the country in which it was last registered. A foreign company has a connection with the BVI only if:

New Member Spotlight

The International Committee community is continuing to grow! We are excited to introduce and welcome the following new members:

Indian Cross-Border Insolvencies: Beyond the Horizon

Whether it is the time lag depicted in Future Shock by Alvin Toffler in 1970 or the relativity of time by Yual Hararri in The History of Homo Sapiens, we have never felt the fast pace of a changing world as we are witnessing now. The rapid pace of digitalization, investment opportunities across the world and exchange of technologies have shrunken the world to a click of a mouse. In this rapidly changing scenario, no investor can survive by restricting themselves to the boundaries of a nation, which results in having assets across more than one territorial jurisdiction.

ABI Happy Hour at INSOL

The International Committee hosted an in-person happy hour social during INSOL London 2022 on June 27 at the conference hotel, the JW Marriott Grosvenor House London. Thank you to everyone who attended to mix-and-mingle with fellow ABI members; we had a blast!

Co-Chairs Corner

We hope this newsletter finds you enjoying the lazy days of summer and maybe even getting to do some international traveling. Keep reading to hear all the amazing things the International Committee has been up to.

Welcome to Our New Committee Members

The International Committee continues to grow, and we’d like to extend a particular welcome to our newest members. You can read a bit about some of our newest members in the “New Member Spotlight” section of the newsletter. Our new members perfectly highlight the international reach of this committee.

Global Insolvency Website Update

We are pleased to announce that, with the help of ABI’s Karim Guirguis and his team, the Global Insolvency website (globalinsolvency.com) has had numerous updates that will enhance its visibility, add significantly more valuable content, and draw more viewers to the site. In addition to branding Global Insolvency as an ABI-affiliated website, a globalinsolvency.com link has been added under “Featured Links” on the ABI website landing page.

First Annual ABI International Committee Matter of the Year Award

The ABI International Committee is actively soliciting nominations for the First Annual ABI International Committee Matter of the Year Award. The details are set forth below.

Nomination Deadline: September 15, 2022.

Criteria

Each submission should address how the matter (the “Matter”) satisfies the following criteria:

International June 2022

The Rise of “Reverse” Vesting Orders in the Canadian Insolvency Regime

Maximizing value for creditors is one of the paramount objectives of the Canadian insolvency system. Where the value is in a business varies in each situation. Depending on the nature of the business, a debtor company may have crucial licenses or contracts that are not transferrable but are necessary in order to operate. In another example, an entity may have significant tax losses that may be a driver of value, but the path to a successful plan of arrangement is uncertain or the debtor has insufficient resources to pursue a plan of arrangement in Canada.