Part XIX allows the BVI Court to provide assistance in relation to foreign insolvency proceedings from designated countries. A foreign proceeding being a collective judicial or administrative proceeding, including an interim proceeding, where the affairs of the debtor are subject to control or supervision by a foreign court, for the purpose of reorganisation, liquidation or bankruptcy.

Until recently, the designated countries were limited to only nine jurisdictions: Australia, Canada, Finland, Hong Kong, Japan, Jersey, New Zealand, United Kingdom, and United States of America.

The FSC has now added over 20 additional countries to the list, including several major offshore and onshore jurisdictions. The newly added jurisdictions are:

1. Bahamas
2. Barbados
3. Belize
4. Bermuda
5. Cayman Islands
6. Guernsey
7. Guyana
8. Ireland
9. Isle of Man
10. Jamaica
11. Member States and Territories within the Organisation of Eastern Caribbean States (the OECS, comprising Anguilla, Antigua and Barbuda, Dominica, Grenada, Guadeloupe, Martinique, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines)
12. Nigeria
13. Singapore
14. Trinidad and Tobago
15. Turks and Caicos Islands

This designation means that personal bankruptcies, judicial managements and foreign liquidations from these countries can now access streamlined assistance from the BVI Court, which has the jurisdiction to grant a wide range of orders including the power to deal with the foreign company's BVI assets, exercise functions in relation to the company, and examine individuals connected to the company.

Given that the BVI Court of Appeal has previously held that Part XIX provides a complete code for foreign representatives from designated countries to apply to the BVI Court for assistance, the expansion of the list of countries is significant.

For foreign officeholders from non-designated countries, the common law right of recognition survives and the BVI Court will recognise a foreign office holder as having status in the BVI in accordance with their appointment by the foreign court. However, it is a more convoluted process and without the jurisdiction to grant assistance there is often limited benefit in obtaining recognition from the BVI Court on its own.

Given the common economic and legal ties between the BVI and many of the newly added countries – in particular Bermuda, Cayman, the OECS and Singapore – these changes will significantly improve outcomes for cross-border restructurings and insolvencies involving the BVI.

By expanding cooperation under Part XIX, complex multi-jurisdictional proceedings involving offshore jurisdictions and beyond will benefit from easier coordination between local courts and officeholders.