In complex cross-border situations, there are often Cayman entities that sit ‘silently’ in the structure, including holding companies, funds and limited partnerships which may sit at the top of the global corporate structure (“Cayman TopCo”). The real noise – trading activity, investments, regulators – are often in other jurisdictions.

In scenarios when stress hits or disputes occur, whether it be a restructuring, an orderly wind-down, a governance/board reset or even the need for a formal liquidation, that seemingly ‘silent’ Cayman piece suddenly becomes critical.

This is where IMS can become a critical player. 

Whether alongside onshore insolvency practitioners, foreign counsel or existing board members, IMS is designed to be the “go-to” Cayman office:

• ensuring strict compliance with Cayman Islands law;

• coordinating with onshore advisers; and

• doing so in a practical, pragmatic and cost-sensitive way that avoids duplicating effort or expense in multiple jurisdictions.

Why a Cayman “Piece” Matters – Even When the Action Is Elsewhere

In many restructurings and wind-downs, the operational heart of the group is onshore: the borrowers, the assets, the trading business, and most of the creditors. The Cayman entity can appear to be just a holding or fund vehicle. The temptation is to treat it as an afterthought.

However, Cayman is often where:

• Legal ownership of key assets or subsidiaries sits (such as a Cayman TopCo, fund or SPV).

• Investor and creditor rights are governed under Cayman law and constitutional documents.

• Regulatory obligations arise, particularly where vehicles are (or were) regulated by CIMA. 

Ignoring the Cayman dimension, or leaving it to “sort itself out later”, can:

• undermine a carefully crafted onshore restructuring strategy;

• create mismatches between onshore outcomes and Cayman investor/creditor rights; and

• generate avoidable delay, cost and risk at the back end (for example, when deregistering with CIMA or dissolving the entity). 

The smarter move is to place the right Cayman specialist into the structure at the right time – not to replicate the work being done onshore, but to align with it.

IMS as the Cayman Joint Appointee – One Move, Multiple Scenarios

IMS can slot into a wide range of cross-border mandates, either “on the board” or “in the wings”, depending on what the situation requires and where the entity lies (i.e. as the Cayman Topco or within a group structure). 

1. Cross-Border Restructurings with Foreign Main Proceedings

In a scenario where the main restructuring / liquidation work is being run in another jurisdiction, IMS can:

• Act as Cayman joint appointee with the foreign officeholder or restructuring professional, ensuring:

  • the Cayman entity’s decisions and filings are fully compliant with Cayman law;

  • Cayman governance and investor/creditor processes are aligned with the onshore plan; and

  • the entity remains in good standing with the Registrar and, where relevant, CIMA; and

  • the Grand Court of the Cayman Islands is notified and aware of the appointment, with creditor claims/proofs of debt (and any directions or sanction applications) to be submitted in that forum as appropriate.

• Avoid duplication of effort by focusing on what is uniquely Cayman: statutory steps, court processes (where needed), and regulatory touchpoints – leaving the main commercial and operational work to the onshore team.

Result: the foreign process runs smoothly, while Cayman is kept “in formation” rather than becoming an after-the-fact scramble.

2. Voluntary Wind-Downs and Regulatory Cleanup

Where a structure is solvent but no longer needed – for example, a fund that has largely exited its investments and/or all investors have been fully redeemed – Cayman entities typically face a choice between:

• voluntary liquidation, which provides finality and mitigates the risk of future claims; or

• strike-off, which is cheaper and faster, but leaves open the risk of reinstatement and ongoing potential liability for directors and stakeholders. 

IMS helps clients:

• Design the right wind-down route – considering remaining assets/liabilities, investor expectations, and long-term risk appetite.

• Optimise CIMA interactions – including the use of voluntary liquidator’s reports and audit waivers in appropriate cases to avoid stub audit costs and unnecessary delay. 

• Execute the process end-to-end – from paying out final distributions and simplifying capital, to convening meetings, signing returns, and filing deregistration and dissolution documentation.

This is where IMS’ existing voluntary liquidation and strike-off expertise is directly relevant: it allows an efficient, compliant and predictable exit, often at a lower overall cost than ad hoc clean-up steps spread over several years. 

3. Parachute Director and Board-Level Intervention

Sometimes, the most effective move is not a formal process at all, but a targeted governance intervention.

IMS’ “parachute director” model was developed precisely for distressed and contentious situations where:

• the fund or company is under pressure;

• existing directors have conflicts, have resigned, or are struggling to navigate competing interests; and

• stakeholders want a seasoned Cayman director who can stabilise the situation without immediately invoking formal court processes. 

By appointing an experienced IMS director (for example, on a temporary or situational basis), the entity gains:

• immediate, independent oversight anchored in Cayman law and market practice;

• a pragmatic decision-maker who can liaise with onshore counsel and advisers, negotiate with creditors or investors, and map options from contingency planning through to execution; and

• a credible signal to the market and investors that the board is serious about governance, fairness and value preservation. 

This board-level chess move is often enough to avoid a rushed petition or uncontrolled collapse – keeping more options open and more value on the table.

4. Formal Liquidations and Supervision by the Cayman Court

Where a formal Cayman court process is appropriate or unavoidable – such as an official liquidation or a supervision order – IMS can act as:

• Joint official liquidator with an onshore firm, or

• Cayman resident official liquidator 

In this role IMS:

• handles all Cayman-specific court, statutory and regulatory obligations;

• coordinates recognition and information flows between jurisdictions; and

• ensures that Cayman stakeholder processes (creditor meetings, distributions, reporting) align with onshore strategies.

The idea is not to multiply professional teams, but to use IMS as the Cayman “piece” that makes the global appointment strategy coherent and in line with Cayman law.

Why Double Down on Costs When You Don’t Need To?

A recurring concern in cross-border matters is cost. If the real work is onshore, why pay for another full set of advisers offshore?

IMS answers this by focusing its role where it adds unique value:

• Cayman compliance and governance – ensuring that every decision and filing taken in Cayman is defensible, documented and aligned with both Cayman law and the overarching strategy.

• Calibrated involvement – IMS can be front-and-centre (as joint voluntary liquidator or joint official liquidator) or work more quietly in the background, advising boards, onshore counsel and foreign officeholders on Cayman processes and options.

• Avoiding regulatory and finalisation “surprises” – such as unexpected CIMA fees, missing filings, or flawed strike-off/voluntary liquidation steps that need to be unwound later. 

This means you are not paying twice for the same work. Instead, you are paying once for onshore, and once for precisely targeted Cayman expertise that ensures the strategy holds together legally and practically.

Why IMS Specifically?

IMS is not a new entrant or a niche boutique. It holds 4 licences from CIMA and has been operating in the Cayman Islands since 1974 and is one of the longest-established offshore governance and corporate services providers in the jurisdiction. 

Across its group, IMS:

• Has provided independent directors and governance services to thousands of funds.

• Has deep experience with funds, securitisations, partnerships, trusts and complex holding structures.

• Holds a broad suite of licences spanning trust, mutual fund administration, insurance management, company management, registered office and insolvency practitioner services.

Its team has over 200 years of combined fund-industry experience and an established track record of working shoulder-to-shoulder with leading law firms and insolvency practices around the world.

In short: IMS already sits on the boards, provides the registered offices, and handles the wind-downs of the very types of entities that find themselves at the centre of cross-border restructurings and exits.

Closing Thought

In cross-border restructurings, voluntary wind-downs, board resets and formal liquidations involving Cayman entities, the question is not whether Cayman will matter – it is when and how it will matter.

By involving IMS early, whether as a visible joint appointee or a strategic adviser on the board, you place the right piece on the Cayman square at the right moment. Checkmate.

In addition to its front-line appointment capabilities, IMS also brings fully established and well-respected service lines to suit various mandates. This includes: 

• Independent non-executive directors to funds (hedge, PE, VC, etc.), structured finance vehicles and associated entities. IMS can also provide parachute directors for distressed entities.

• AML Officers to registered funds.

• Captive /re-insurance – Formation and management of captive insurance and reinsurance companies, including assistance with licensing.

• Insolvency and restructuring – appointment taking in official liquidations, voluntary liquidations, fund de-registration and liquidator’s reports in lieu of final ‘stub’ audit.

• Trusts/Foundations – formation and management of trusts/foundations, acting as trustee, protector and enforcer. 

• Corporate Services – formation and management of Cayman companies.  

• Vessel registration and acting as representative person to the shipping registry.

Taken together, this allows IMS not only to act as the Cayman decision-maker, but also to deliver the operational backbone required to implement those decisions efficiently and seamlessly.