Cayman Islands bankruptcy law

The Cayman Islands is a leading financial services centre.

Cayman Islands bankruptcy law is principally codified in five statutes and statutory instruments:

  • the Bankruptcy Law (1997 Revision)
  • the Companies Law (2013 Revision)
  • the Companies Winding Up Rules 2008 (as amended)
  • the Insolvency Practitioners' Regulations 2008 (as amended)
  • the Foreign Bankruptcy Proceedings (International Cooperation) Rules 2008

These are supplemented by a number of practice directions of the Cayman Islands courts and a wide body of case law.

Most of the recent emphasis of bankruptcy law reform in the Cayman Islands relates to corporate insolvency rather than personal bankruptcy. As an offshore financial centre, the Cayman Islands has more resident companies than citizens, and accordingly the courts a large amount of time dealing with corporate insolvency and reorganisation. Because a large number of Cayman Islands are listed on stock exchanges in major financial centres, and number of Cayman Islands corporate bankruptcies have generated a high profile internationally.[1]

Bankruptcy of individuals is usually referred to as "personal bankruptcy" in the Cayman Islands, whereas the bankruptcy of corporations is referred to as "corporate insolvency". The relevant statutes deal with both separately, although there are some provisions which are common to both.

  1. ^ See for example: "LDK Solar USA Files Chapter 11 Bankruptcy". NASDAQ.com. 21 October 2014.

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