Mobile Menu
Articles

“Holding the Fort” – Cayman Islands Litigation

In the Cayman Islands, like many other common law jurisdictions, claimants have various tools available to them to try to protect their position pending a final ruling. For example, the Cayman Islands Grand Court can issue a freezing injunction, appoint receivers and/or appoint provisional liquidators in the appropriate circumstances. One of the major points of emphasis from recent cases is that, due to the intrusive nature of each of these draconian remedies, there is a heavy burden on the applicant to show that the relief is necessary. Accordingly, in most cases, in order to convince the Grand Court that urgent intervention is essential, the applicant will need cogent evidence of a real risk of dissipation of assets or serious mismanagement.

The availability of these interim remedies is particularly relevant to creditors and contributories of large publicly listed companies, which use Cayman Islands companies as their listing vehicles. More than 50% of companies listed on the Hong Kong Stock Exchange are incorporated in the Cayman Islands. Cayman Islands entities are also commonly used by groups operating in Mainland China and listed on an exchange in the United States. In formulating litigation strategies to target or defend these listed companies, it is essential to accurately assess whether the evidence in a particular case would justify the imposition of the drastic measures that are available in the Cayman Islands.

By reference to two recent decisions of the Grand court, Conyers discusses the current position in the Cayman Islands in more detail.

Conyers acted for Sky Solar in successfully lifting the ex parte injunction and discharging the receivers. Conyers has acted on both sides of numerous other injunction applications in support of both foreign and domestic proceedings (see another recent example in Linden Capital LP et al v. Luckin Coffee, Inc,).

Conyers also acted for the petitioner in successfully appointing provisional liquidators to Pacific Institutes Holding Company Limited. Conyers regularly acts for creditors and contributories seeking interim relief in advance of a full petition hearing.

To read the full article, click here.

 


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


Spencer Vickers
Counsel

Cayman Islands   +1 345 814 7757


This article was originally published in Commercial Dispute Resolution Magazine.

Accolades
_

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