Good news for debtors seeking access to the Cayman Islands restructuring regime

Table of contents

• Restructuring moratorium—FAQs
• What is the restructuring moratorium?
• In what circumstance is it expected that the restructuring moratorium will be used most frequently?
• Will the moratorium prevent secured creditors from enforcing their security or exercising contractual rights of set-off or netting?
• Will the moratorium prevent counterparties from exercising their contractual rights, for example in relation to capital call rights and related issuance of shares?
• Will the moratorium have extra-territorial effect?
• Who can apply to the court to appoint restructuring officers?
• What criteria must be satisfied in order to appoint restructuring officers and obtain the moratorium?
• Must the proceedings to implement the restructuring take place in the Cayman Islands?
• Who can be restructuring officers?

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Article summary

Restructuring & Insolvency analysis: Reforms to Cayman Islands restructuring laws are expected to come into force at the end of Q1 2022. Caroline Moran and Nick Herrod from Maples and Calder look at these reforms in further detail.