R&I over Wi-Fi - Demonstrating insolvency in the restructuring context

In our fourth episode of R&I over Wi-Fi, Partner Paul Madden discusses provisional liquidation, focussing on the appointment of restructuring provisional liquidators when a company is unable to pay its debts.

Key takeaways

• The gateway for the appointment of restructuring provisional liquidators is that the company is unable to pay its debts and that it intends to present a compromise or arrangement to its creditors.
• The inability to pay debts is determined by reference to the cash flow test, however, practically speaking a complete picture of the company’s financial position will relevant when seeking the appointment of restructuring provisional liquidators.
• As the proposed amendments to the Cayman Islands restructuring regime are currently formulated, the cash flow test will remain the relevant test when the Companies Law is amended. Please check out our Restructuring page for dedicated specialist expertise needed to navigate the complexities which can arise for a distressed company in a cross-border environment.

Please check out our Restructuring page for dedicated specialist expertise needed to navigate the complexities which can arise for a distressed company in a cross-border environment.

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Harneys produces a variety of podcasts, providing on-the-go legal analysis over the airways. Visit our Podcasts page to see them all.