Similar to Bermuda, BVI creditors, particularly where lending is in place to fund operations in Asia, are keen to move as swiftly as possible to winding up proceedings upon payment default where there is no or insufficient security. Complex and drawn out restructuring does not appear to be in favour, at least to the extent that it involves the Court via schemes of arrangement or light-touch provisional liquidation. Where winding-up and provisional liquidators may not be appropriate, but there is still a need to protect assets pending determination of claims, a significant development in 2021 was the placing of injunctions in support of claims overseas on a statutory basis (by the enactment of section 24A of the Supreme Court Act). We have already seen these provisions being used successfully to obtain injunctions and expect this to continue in 2022.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
