Offshore Litigation

Blog

Offshore Litigation

Contributors

Jonathan Addo
Jonathan Addo
  • Jonathan Addo

  • Partner
  • British Virgin Islands
Jeremy Child
Jeremy Child
  • Jeremy Child

  • Partner
  • London
Stuart Cullen
Stuart Cullen
  • Stuart Cullen

  • Partner
  • British Virgin Islands
Julie Engwirda
Julie Engwirda
  • Julie Engwirda

  • Partner
  • Hong Kong
Peter Ferrer
Peter Ferrer
  • Peter Ferrer

  • Partner
  • British Virgin Islands
Claire Goldstein
Claire Goldstein
  • Claire Goldstein

  • Partner
  • British Virgin Islands
Hazel-Ann Hannaway
Hazel-Ann Hannaway
  • Hazel-Ann Hannaway

  • Partner
  • British Virgin Islands
Nick Hoffman
Nick Hoffman
  • Nick Hoffman

  • Partner
  • Cayman Islands
Andrew Johnstone
Andrew Johnstone
  • Andrew Johnstone

  • Partner
  • Hong Kong
Paula Kay
Paula Kay
  • Paula Kay

  • Partner
  • Hong Kong
Phillip Kite
Phillip Kite
  • Phillip Kite

  • Partner
  • London
Vicky Lord
Vicky Lord
  • Vicky Lord

  • Partner
  • Shanghai
Paul Madden
Paul Madden
  • Paul Madden

  • Partner
  • Cayman Islands
Henry Mander
Henry Mander
  • Henry Mander

  • Partner
  • Cayman Islands
Ian Mann
Ian Mann
  • Ian Mann

  • Partner
  • Hong Kong
William Peake
William Peake
  • William Peake

  • Partner
  • London
Lorinda Peasland
Lorinda Peasland
  • Lorinda Peasland

  • Consultant
  • Hong Kong
Chai Ridgers
Chai Ridgers
  • Chai Ridgers

  • Partner
  • Hong Kong
Nicola Roberts
Nicola Roberts
  • Nicola Roberts

  • Partner
  • Hong Kong
  • Singapore
Paul Smith
Paul Smith
  • Paul Smith

  • Partner
  • Cayman Islands
Andrew Thorp
Andrew Thorp
  • Andrew Thorp

  • Partner
  • British Virgin Islands
Jessica Williams
Jessica Williams
  • Jessica Williams

  • Partner
  • Cayman Islands
Jayson Wood
Jayson Wood
  • Jayson Wood

  • Partner
  • Cayman Islands

Bermuda Light Touch Provisional Liquidation – Working in Practice

In a recent hearing of the Supreme Court of Bermuda, Chief Justice Hargun made an order validating the sale by GTL International Limited (In Provisional Liquidation) (the Company) of 12 of its subsidiaries. The Company is part of a larger global group of companies which operates in the telecommunications sector.  

The Company was placed into provisional liquidation in order to conduct a restructuring. During the course of formulating the restructuring, it was  determined that due to the deteriorating cash flow position of the Company,  a sale of the Company’s shareholdings in its subsidiaries was necessary to ensure that the subsidiaries remained operational and enable  the Company to  obtain the highest possible return for creditors. The terms of the light touch provisional liquidation left the power of sale with the board of directors.    

The Court was satisfied that the legal test for the disposition of assets (as set out in In re IPOC International Growth Fund & Ors and elsewhere) was met and in view of the financial position of the Company, validated the sale of the assets of the Company whilst still in provisional liquidation. By validating the sale, the Court allowed a previously negotiated accelerated M&A process to complete.  

Harneys and Zuill & Co*, acted on behalf of the Company in seeking validation of the sale of the Company’s shareholdings in the subsidiaries prior to placing the Company into liquidation.  A validation order was required, as under the Bermuda Companies Act 1981, any disposition of property by a company made after the commencement of a winding up of a company is void without sanction of the Court.   

For more information, please contact Chai Ridgers and Lorinda Peasland of Harneys or Lilla Zuill of Zuill & Co.

*Zuill & Co. is an independent Bermudian law firm that operates in an exclusive relationship with Harneys.

Bermuda Light Touch Provisional Liquidation – Working in Practice

Leave A Comment