Articles

Cayman Islands Restructuring: Comity and Reciprocity

March 2022 Norman HauManwa YipJonathon MilneSean-Anna Thompson

In the recent judgment In the Matter of GTI Holdings Limited delivered on 15 March 2022,¹ the Cayman Islands Grand Court reiterated the importance of principles of comity in cross-border insolvency matters and the central function of the place of incorporation.

A copy of the full judgment is available here.

Background

Winding-up proceedings were filed against GTI Holdings Limited (the “Company”) in both Hong Kong and the Cayman Islands. In May 2020, Conyers were instructed by the Cayman Islands Joint Provisional Liquidators (the “JPLs”) of the Company, who were appointed on a “light touch” basis for restructuring purposes. Importantly, the JPLs also obtained recognition of their appointment in Hong Kong.

A series of orders followed in both Hong Kong and the Cayman Islands to facilitate the restructuring process, as progress was being made by the JPLs and the Company. In light of the headway that had been made and due to substantial support from creditors, the Hong Kong Court set a date for a convening hearing to occur in March 2022 to consider the restructuring plan and a proposed scheme of arrangement.

To continue reading full articles in PDF format:
Cayman Islands Restructuring: Comity and Reciprocity