a result of the rise in interest rates and costs of supply chains. However, a small island economy has certain stresses magnified. This manifests itself in the shortage of labour in certain sectors due to housing and work permit limitations, the costs of the logistics chain for imports to a small island, and the cost of air and sea freight and passenger travel which has a knock-on effect on demand for hotel accommodation. The scale of production also remains a constant challenge to the agricultural sector, which has reduced in recent years in the face of cheaper imports, although none of these areas have produced substantial insolvency or restructuring work in recent times. The finance industry represents a major driver to the Jersey economy and government and stakeholders defend its continued success in the world of global wealth management. How resilient has business proven in the wake of the COVID-19 pandemic? The effect of COVID-19, so far as formal insolvency and restructuring is concerned, and restructuring work in Jersey may be for a more modern legal process to be introduced along the lines of administration, if the finance industry encourages it. Voluntary arrangements and receivership would be positive moves to bring Jersey into line with other modern common law jurisdictions. Additionally, there may be a more proactive approach to sanctioning delinquent directors via a strengthened reporting regime by liquidators. has been difficult to assess. There has been no significant increase in formal liquidation or restructuring work so far as this practitioner can report. However, changes are noticeable in activity in certain areas of the economy and, on a small island, businesses can discreetly close down without formal winding up. Importantly, the just and equitable process for winding a Jersey company up has provided wide scope for restructuring, albeit within a liquidation. The Royal Court’s jurisdiction is wide when appointing a liquidator under this process. It is not, per se, an insolvency process and permits the court to tailor a winding up order to fit the desired restructuring. This has, in the past, permitted the effective administration, through a quasi-prepack process, of a Jersey group to allow survival of a business that would otherwise have closed. Do you observe any significant trends in insolvency in your jurisdiction? Can you share any predictions for how it may be shaped in 2023? The prospects for future insolvency THOUGHT LEADER 65 About Alan Roberts Alan Roberts is a director at Grant Thornton Limited. He is a Chartered Accountant, UK-licensed insolvency practitioner and Certified Fraud Examiner. He has specialised in insolvency and restructuring work for over 30 years across several jurisdictions, including the UK, US, Caribbean, Europe, Far East and the Channel Islands. He is one of only four Jersey-approved liquidators. About Grant Thornton Limited Grant Thornton Limited (Channel Islands) is a member firm of Grant Thornton with offices in Guernsey and Jersey. Both offices have been established for more than 35 years, with a history of providing top-quality professional services to a wide range of corporate and private clients that operate in a variety of different sectors both locally and internationally.
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