Mobile Menu
Articles

Cayman Islands Restructuring: No Place Like Home

Conyers were instructed by Silver Base Group Holdings Limited (“Silver Base”) in relation to a successful application for the appointment of “light-touch” provisional liquidators for restructuring purposes before the Grand Court of the Cayman Islands.

In an important judgment delivered on 8 December 2021, Mr. Justice Doyle emphasised the importance of the laws of the place of incorporation of the relevant company in a restructuring and/or insolvency context.  A link to the judgment is here.

Background

Silver Base is the Cayman Islands-incorporated holding company for a large group specialising in liquor distribution.  The Silver Base Group focuses on the sale of premium baijiu (or shaojiu), which is the world’s bestselling liquor. The vast majority of the Group’s revenue is generated in the People’s Republic of China (the “PRC”). The profitability of the Silver Base Group, which has operated since 1997, has been severely impacted by the global pandemic.

A number of creditors based in Hong Kong and the PRC had made demands against Silver Base.   At the time of filing in the Cayman Islands, there were existing winding-up proceedings in Hong Kong. Accordingly, the Grand Court raised concerns regarding issues of comity and the scope of recognition of the nominated Cayman Islands officeholders.

Those concerns were dealt with, in part, by modifying the order of appointment of the provisional liquidators to leave scope for the Hong Kong court to determine the existing proceedings, despite the Cayman Islands appointment order and related moratorium. The Grand Court conveyed a message to the Hong Kong Court that, at least from the Cayman Islands perspective, it would be “sensible and appropriate” for the Hong Kong Court to recognise and give assistance to the Cayman Islands provisional liquidators to promote a restructuring of Silver Base’s debt.

 

To continue reading full articles in PDF format:
Cayman Islands Restructuring: No Place Like Home

 


Norman Hau
Partner

Hong Kong   +852 2842 9548
Mobile  +852 6469 3363


Jonathon Milne
Partner

Cayman Islands   +1 345 814 7797
Mobile  +1 345 925 2952


Róisín Liddy-Murphy
Counsel

Cayman Islands   +1 345 814 7371


Jasamine Yung
Associate

Hong Kong   +852 2842 9441
Mobile  +852 9169 0059


Accolades
_

"I enjoy working with them - they are very dependable, reliable and responsive."
- Chambers Global