Vol 19 (2022) - Issue 3

Article preview

Evolution of Jersey’s Insolvency Regimes

Synopsis
Legislation that came into force on 1 March 2022 marked the beginning of a new era in Jersey's insolvency regimes and will strengthen its reputation as a jurisdiction at the forefront of the global financial services industry
The new legislation has:
1. created an additional type of winding up of an insolvent company that can be initiated by a creditor and ordered by the court; and
2. redefined the eligibility criteria for appointment as a liquidator in specified circumstances (including liquidator appointments under the new court ordered creditors' winding up procedure).
These changes represent a significant milestone in the evolution of Jersey's corporate insolvency regimes and implement improvements from which creditors of distressed businesses will derive considerable benefit, whilst incorporating protections that safeguard businesses from frivolous or vexatious applications.