WWW.LAWYER-MONTHLY.COM 51 entitled to a winding-up order as of right. Shareholders also have access to a process by which a company might be wound up without evidence of its insolvency on the grounds that it is just and equitable to do so. That said, the legal system also contains adequate debtor-friendly mechanisms that allow a company to seek protection from its creditors while it formulates or proposes a compromise or arrangement to them. The Grand Court has become adept at identifying cases where there is a realistic prospect of a restructuring solution that provides a greater return to creditors, and cases where there is no prospect of a successful restructuring, and the outcome for creditors and/or shareholders is improved by a winding-up. Insolvency practitioners are regulated by the Insolvency Practitioners Regulation Act 2019, which requires those taking insolvency appointments to be professionally qualified, appropriately experienced, and subject to independent oversight. The combined effect of these measures is to promote quality, expertise, and integrity in the profession. There are a large number of specialist insolvency firms operating in the Cayman Islands, ensuring healthy competition, driving up standards, and focusing on costeffective and commercially pragmatic solutions. Insolvency practitioners are typically supported by well-qualified, experienced, and regulated lawyers. The sum total of these different elements results in an environment where insolvency and restructuring cases are dealt with by qualified, experienced, and regulated professionals, before a dedicated, relevantly experienced, and independent judiciary with access to an expansive body of statute and case law. The Cayman Islands’ legal system is creditor-friendly, in that creditors of an insolvent entity are generally entitled to a winding-up order as of right.
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