Best Restructuring & Insolvency Lawyers in George Town

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Stuarts Humphries
George Town, Cayman Islands

Founded in 2002
50 people in their team
English
About StuartsStuarts Humphries is a client-oriented offshore legal practice offering fully integrated corporate and commercial legal advice from our experienced attorneys. We provide timely, exceptional legal advice and representation to our clients in connection with their commercial...
HSM

HSM

George Town, Cayman Islands

Founded in 2012
50 people in their team
English
French
Spanish
HSM is a distinguished full-service law firm in the Cayman Islands, specialising in litigation, corporate and commercial, property, insolvency/restructuring, immigration, private client and trusts, labour and employment law, debt collection, corporate services and intellectual property.We provide...
Hampson and Company
George Town, Cayman Islands

Founded in 2010
10 people in their team
English
Established by Graham Hampson and Paul Keeble in 2010, Hampson and Company is a well-regarded full-service Cayman Islands law firm.Between them, Graham and Paul have over 70 years of combined legal and courtroom experience and have guided many clients to successful outcomes. While Graham retired...
Priestleys
George Town, Cayman Islands

Founded in 2000
50 people in their team
English
WE KNOW AND UNDERSTANDThere are many offshore law firms. They all know the law. Then there are the rare law firms who not only know the law, they understand people and their business needs. Priestleys knows the law. We also understand. We believe this is what sets us apart as a best-in-class Cayman...
Campbells
George Town, Cayman Islands

Founded in 1970
200 people in their team
English
Campbells is a leading full service offshore law firm established in 1970.  From our offices in the Cayman Islands, the British Virgin Islands and Hong Kong we provide comprehensive corporate and litigation advice and services to clients worldwide in relation to Cayman Islands and British...
KSG Attorneys
George Town, Cayman Islands

Founded in 2017
50 people in their team
English
A Full Service Law Firm in the Cayman IslandsWe are a focused and dynamic firm whose Attorneys have a vast wealth of experience across the full spectrum of legal service areas in the Cayman Islands. Our aim is to provide clear and practical legal advice and - where consistent with our clients’...
Quality Law Services
George Town, Cayman Islands

Founded in 2016
50 people in their team
English
Our StoryWe'd love to tell you all about us, but we'd rather focus on You! We do things a little differently here at Quality.  Founded by Christine Bodden and Juliet Fenn in 2016, we like to believe we give you quality but with a capital "Q."Christine is an Attorney-at-Law and Notary...
Boddens
George Town, Cayman Islands

Founded in 2002
50 people in their team
English
‘Caymankind’ is in our DNA. It’s in the warm hospitality extended to our clients and the camaraderie enjoyed with our colleagues. It’s ingrained in the culture of the firm, which shares its name with one of Cayman’s most common surnames and the name of the first recorded permanent...
Francis Grey
George Town, Cayman Islands

Founded in 2000
50 people in their team
English
FrancisGrey is a specialist Cayman Islands law firm providing advice on corporate and commercial law for everyone, from large financial service providers to emerging managers and private investors with big aim. We offer focused, bespoke legal service. The work that we undertake is cross border,...
Ritch & Conolly
George Town, Cayman Islands

Founded in 1983
50 people in their team
English
Ritch & Conolly was established in 1983 as a Cayman Islands law firm and undertakes a wide range of legal services for domestic and international clients. On 21 June 2021 it converted from Ritch & Conolly, a partnership, to Ritch & Conolly LLP, a limited liability partnership registered...
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About Restructuring & Insolvency Law in George Town, Cayman Islands

Restructuring and insolvency law in George Town, the capital of the Cayman Islands, plays a crucial role for companies and individuals facing financial challenges. The Cayman Islands is a leading international financial center, and its legal framework offers robust solutions for debt restructuring, bankruptcy, and insolvency proceedings. These laws are designed to facilitate the fair and efficient recovery of debts, protect creditors' interests, and provide viable options for distressed businesses to reorganize or wind down operations in an orderly manner. The Cayman Islands attract global entities, making its restructuring and insolvency regime especially relevant for cross-border cases involving complex financial structures.

Why You May Need a Lawyer

Legal advice is highly recommended when dealing with restructuring and insolvency matters in George Town, Cayman Islands. Here are common scenarios where seeking assistance from a qualified lawyer is important:

  • Corporate Financial Distress: If your company is facing cash flow shortages, increasing creditor pressure, or an inability to meet its obligations, professional legal advice can help explore restructuring options or formal insolvency procedures.
  • Personal Bankruptcy: Individuals unable to pay their debts may need guidance on their rights and obligations under Cayman law, or assistance with personal bankruptcy filings.
  • Creditors Seeking Recovery: Creditors owed money by an insolvent entity or individual may need to enforce claims, understand their rights, and participate in insolvency proceedings.
  • Cross-Border Insolvency: International companies with assets or liabilities in the Cayman Islands often require legal support navigating the territory’s insolvency framework and working with foreign insolvency regimes.
  • Directors and Officers’ Duties: Directors may require legal advice on fulfilling their duties and managing potential liabilities if their company is facing insolvency.

Local Laws Overview

The Cayman Islands has developed a comprehensive legal environment for restructuring and insolvency, largely governed by the Companies Act (2023 Revision) and the Insolvency Practitioners’ Regulations. Key features include:

  • Voluntary and Compulsory Liquidation: Companies can enter voluntary liquidation initiated by members or creditors, or be wound up by an order of the court, commonly for insolvency or inability to pay debts.
  • Provisional Liquidation: The Cayman legal system allows for provisional liquidators to be appointed. This is especially significant for restructuring efforts because it allows the company to pursue restructuring while under the oversight of officers appointed by the court.
  • Scheme of Arrangement: Companies can seek court approval for a compromise or arrangement with creditors. This flexible mechanism enables restructuring of debt and continued business operations.
  • Recognition of Foreign Insolvency Proceedings: The courts can recognize and, in some cases, provide assistance to insolvency proceedings commenced in other jurisdictions.
  • Creditor Rights and Priorities: The laws provide a framework for creditor claims, including the ranking of unsecured and secured creditors and treatment of preferential claims.
  • Duties of Directors: Directors are required to act in the best interest of the company. If insolvency is likely, they must consider the interests of creditors as a whole.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring involves reorganizing a company’s debts or operations to restore financial stability and avoid insolvency. Insolvency refers to a situation where a person or company cannot pay their debts as they fall due, which may lead to liquidation or bankruptcy proceedings.

Can an overseas creditor initiate insolvency proceedings in the Cayman Islands?

Yes, foreign creditors can bring insolvency proceedings if the debtor company is incorporated or has substantial assets in the Cayman Islands, subject to compliance with local legal requirements.

What is provisional liquidation and when is it used?

Provisional liquidation is a court-supervised process where independent liquidators are appointed to protect assets or manage restructuring efforts. It is often used to allow a company to restructure debts while protecting its assets from creditor claims.

How does a scheme of arrangement work?

A scheme of arrangement is a court-approved agreement between a company and its creditors or shareholders to restructure debt or business operations. It requires approval from a majority in number and 75 percent in value of creditors or members.

Are directors personally liable for company debts in insolvency?

Generally, directors are not personally liable for company debts unless they have breached their duties, acted fraudulently, or traded while insolvent. However, directors must act in the interests of creditors once insolvency is likely.

What are secured and unsecured creditors?

Secured creditors have claims backed by collateral, such as property or other assets, while unsecured creditors have no specific collateral securing their claims. Secured creditors have higher priority in repayment during insolvency proceedings.

How are employees treated in insolvency cases?

Employees’ claims for unpaid wages and certain benefits are usually given preferential priority under Cayman Islands law, meaning they are paid ahead of unsecured creditors.

Can personal bankruptcies be filed in the Cayman Islands?

Yes, individuals can file for bankruptcy in the Cayman Islands. There are legal processes governing declaration of inability to pay debts and appointment of a trustee in bankruptcy.

How long do insolvency proceedings usually take?

The duration of proceedings varies depending on the complexity of the case, the nature of the assets involved, and whether court approvals are required. Some liquidations can take several months; more complex matters may take years.

Is confidential advice available for restructuring and insolvency matters?

Yes, Cayman Islands law firms and practitioners offer confidential consultations and solutions tailored to your specific circumstances. Discussions with a qualified lawyer are protected by legal professional privilege.

Additional Resources

For those seeking further information or requiring practical support, the following resources can be helpful:

  • Cayman Islands General Registry: The Registrar of Companies manages company registrations and provides information on liquidation processes.
  • Cayman Islands Judicial Administration: The courts oversee insolvency proceedings, schemes of arrangement, and bankruptcy cases.
  • Cayman Islands Legal Practitioners Association: This body maintains a directory of qualified insolvency lawyers and professionals.
  • Insolvency Practitioners’ Associations: These organizations provide best practices, standards, and updates relevant to insolvency and restructuring professionals in the Cayman Islands.

Next Steps

If you believe you or your business may need support with restructuring or insolvency in George Town, Cayman Islands, take the following steps:

  • Assess Your Situation: Gather relevant financial documents and assess your financial position-both assets and liabilities.
  • Seek Professional Advice: Contact an experienced restructuring and insolvency lawyer. An initial consultation can help determine your options and outline a strategy.
  • Act Promptly: Early legal advice can preserve more options and better protect your interests, especially if assets or business operations are at risk.
  • Continue Communication: Stay in regular contact with your lawyer and other stakeholders such as creditors, employees, or regulators, as appropriate.
  • Follow Legal Processes: Ensure all filings, notices, and proceedings follow Cayman Islands law and comply with court procedures to avoid unnecessary complications or delays.

Taking timely and informed action with guidance from local professionals can make a significant difference in the outcome of restructuring and insolvency matters in George Town, Cayman Islands.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.