The American Bankruptcy Institute Caribbean Insolvency Symposium in Puerto Rico was a gold mine of highly relevant information on international insolvency and restructuring.
Here are Laura Hatfield's 5 key takeaways from the event:
1. The US cannabis industry cannot easily access bankruptcy due to the federal illegality of cannabis, but a state court appointed receiver can essentially achieve the same result. US receiverships are fast and cost effective alternatives to bankruptcy generally. In Canada also a receivership can prove a good alternative to bankruptcy proceedings.
2. Other alternatives to bankruptcy are assignment for the benefit of creditors (but not all States have that on the books) and that the equivalent of a Cayman voluntary liquidation should be looked for in US Corporations law not the bankruptcy code.
3. Rights of a beneficial owner of bonds are buried under a huge amount of contract documents and can be very fact specific and BVI disagrees with England, Hong Kong and Cayman on whether a BO can liquidate a bond issuer (so far, but watch for the appeal).
4. The exact parameters of a Federal Deposit Insurance Corporation bank account guarantee are going to be tested as the liquidators of the Cayman branch of collapsed Silicon Valley Bank seek Chapter 15 recognition to challenge the FDIC claim denial letter received.
5. Lehman Brothers was by far the largest US bankruptcy, so much so that adding the next three largest, still does not amount to as much in value (check Statista to see the largest bankruptcies in the US https://lnkd.in/gP9y9xB5).
#cayman #americanbankruptcy #BedellCristin #offshorelaw
Partner Laura Hatfield from our Cayman Islands Litigation team will be speaking on "Current Wind-Down Issues" at the American Bankruptcy Institute Caribbean Insolvency Symposium in Puerto Rico tomorrow, 23 January 2024.
Laura will be speaking on a panel with John Royle of Grant Thornton and Laura Appleby of Faegre Drinker, moderated by Eleanor Morgan of Mourant, to give a Cayman perspective on developments in the insolvency and restructuring space.
#cayman #americanbankruptcy #BedellCristin #offshorelaw
Managing Director Grant Thornton Specialist Services (Cayman) Limited
2moGot to admire the Spurs fan hiring policies at Harneys!!!