Caribbean update

In addition to a long running hedge fund insolvency and other legacy case work, RHSW has recently been appointed to the following cases:

  • Provisional liquidators in the Cayman Islands to facilitate the restructuring of a Chinese pulp and paper manufacturer. This is a joint appointment with a Hong Kong practitioner and it is intended that the liquidation will allow for the implementation of a scheme of arrangement that will be binding on stakeholders in the company’s Far East markets as well as the Cayman Islands
  • Official liquidators to an investment brokerage and agency firm for investors from several countries in South America. The company was based in the Cayman Islands but conducted business in both North and South America. The case is likely to involve asset-tracing, marshalling of client monies and an application for Chapter 15 recognition under the United States Bankruptcy Code.
  • Liquidators to a BVI company which owns a luxury villa in St Vincent and the Grenadines. The appointment has been complicated as a result of disputed ownership interests and conflict of laws between the BVI and St Vincent (requiring extensive legal actions in both jurisdictions). Once our appointment has been recognised in St Vincent, we can take possession of the property.
  • Trustees to a dissolved Nevis company (this is synonymous with the appointment of a voluntary liquidator) which owns two care facilities in Scotland. The properties are charged to a Bank and liquidators have been appointed over the company’s Gibraltarian parent. This obviously has complicated both the appointment and asset realisation process. However with the assistance of Smith & Williamson we are making headway in providing the Bank with the necessary comfort to allow us to proceed with an asset realisation program.

Cayman Islands and BVI markets

The offshore financial centres based in the Caribbean continue to grow despite the increased scrutiny from certain governments and public option. Along with most other developed economies, the islands are faced with ever increasing regulation and compliance requirements but are meeting or, in many cases exceeding, international standards.

The insolvency/restructuring market is relatively quiet although the expectation by practitioners on island and in jurisdictions that tend to use Cayman and BVI structures is that the work opportunities will increase with the expected interest rate rises and tightening of global economies.

Hurricane Irma update from the BVI

The BVI continues to recover from the devastating effects of Hurricane Irma which impacted the islands in September 2017. We are glad to say that through the hard work of the BVI Government, the financial services regulator, industry representative bodies and the industry itself, the effects of Irma on financial services industry have been minimal and it was “business as usual” shortly after the storm.

Much work still needs to, and continues to be done to repair the damage to infrastructure, homes and commercial structures caused by the storms, but the natural beauty of the islands remains.

Martin Trott,
Chris Smith,
Nathan Mills and
Owen Walker,
RHSW Caribbean,
Cayman Islands