The Honourable Mr Justice Kawaley granted a winding up order against Airstream Investment Ltd (the “Company”), an exempted company incorporated under the laws of the Cayman Islands. Conyers acted for the successful petitioner, I-Tiger Global Investment Management Limited (the “Petitioner”). Mitchell Mansfield and Samuel Cole of Kroll (Cayman) Limited were appointed as joint official liquidators of the Company pursuant to the winding up order.
Pursuant to an Investment Advisory Agreement and a Supplemental Agreement thereto, the Petitioner was entitled to remuneration for its services rendered as an Investment Advisor to Premier Life Settlement Fund SP (the “Fund”), a segregated portfolio of Aquam Funds SPC. This fee was expressed to be payable inter alia by the Company as the Investment Manager of the Fund (the “Debt”). After a significant period of non-payment, the Petitioner approached Conyers for assistance in seeking a winding-up order against the Company.
Under Section 92(d) of the Cayman Islands Companies Act (2023 Revision), a company may be wound up by the Court if it is unable to pay its debts. When creditors are owed CI$100 or more by a Cayman Islands company and have attempted to collect their money without success, they may present a statutory demand for payment of the outstanding debt. If a creditor does not receive payment within 21 days of service of the statutory demand, the company is deemed unable to pay its debts within the meaning of section 92(d) and a winding-up petition may be presented against it.
Conyers effected service of a statutory demand for the Debt on the Company on 4 October 2023. The Company failed to comply with the statutory demand within 21 days of service. A winding-up petition was consequently issued against the Company on 2 November 2023.
In circumstances where the facts of the case demonstrate sufficient urgency, it is possible for a creditor to obtain relief in the Cayman Islands against a debtor such as the Company within an even shorter timeframe.