The financial impact of the COVID-19 pandemic has put pressure on a wide range of structures and, as a result, lenders, borrowers and other counterparties are looking more closely at the impact of possible insolvency proceedings. As Jersey entities are often used in cross-border finance transactions, it is important to be aware of the differences between Jersey and English insolvency procedures for companies, trusts and limited partnerships.
What are the main Jersey insolvency procedures for a Jersey company?
The main Jersey insolvency procedures for a Jersey company are:
a creditors winding up under the Companies (Jersey) Law 1991 (the Companies Law). This is commenced by a special resolution of the shareholders. The procedure is broadly similar to a creditors voluntary winding up under the UK Insolvency Act 1986; and