Reforms to Cayman Islands insolvency legislation are expected to come into force in early 2022, providing practitioners with an alternative restructuring tool. The amendments to the Companies Act set out a new restructuring officer regime available to companies in financial distress which can be accessed without the presentation of a winding up petition. A key benefit of the new regime is the immediate statutory and worldwide moratorium which will take effect on the filing of the application seeking the appointment of restructuring officers with the Grand Court, similar to the US Chapter 11 regime. Another important reform is the removal of the "majority in number" or "head-count" test for shareholder schemes of arrangement such that only the "majority in value" test must be satisfied to approve a proposed shareholder scheme of arrangement at the relevant meeting(s).
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