Strategic Liquidation and Restructuring Services
IMS provides guidance on voluntary liquidations, strike-offs, receiverships, and court-appointed roles in the Cayman Islands. Our experienced team helps clients manage solvency issues, reduce risk, and implement effective restructuring strategies with precision and compliance.
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Efficient and Compliant Wind-Down Solutions
Court-supervised official liquidation offers a structured approach for insolvent or distressed entities. We work with creditors, regulators, and the courts to protect stakeholders, manage claims, and ensure compliance with Cayman law, providing transparency and minimising risks for directors and investors.
There are steps you can take prior to year-end which can enable you to reduce or avoid certain annual fees and costs which are due by 31 January of each year. Broadly speaking, a solvent Cayman Islands company which is no longer required for one reason or another, has two options for its termination - voluntary liquidation or strike-off. The method chosen generally depends on the history of the company’s operations and its current financial position. It is best that the company has no assets or liabilities before either is commenced. While a strike-off is less expensive and generally faster to effect than a voluntary liquidation, there are limitations to a strike-off (see below). A company which has been struck-off can in some circumstances be reinstated for up to 10 years after its strike-off, whereas with a voluntary liquidation, there is further protection which provides finality, as all matters are to be dealt with in an appropriate manner to mitigate the risk of future claims being pursued against the company or its directors. Once dissolved through a voluntary liquidation process, the company cannot be reinstated.
In accordance with section 8(1) of the Mutual Funds Act (as revised), regulated funds are mandated to secure annual financial audits and a final audit before deregistration of the fund. However, there exists an enticing alternative to the final stub audit process for funds, particularly those in good standing with CIMA, which have the option to apply for an audit exemption under regulatory policies dealing with exemptions from audit requirements; such funds have the option to furnish a comprehensive voluntary liquidator's report per the regulatory policies in lieu of a stub audit report. This report will cover the period subsequent to the last financial year end for which an audit has been submitted. Please note that CIMA may consider extending the fund’s final audit period to a maximum period of 18 months from the last financial year end for which an audit has been filed on a case-by-case basis. This innovative avenue proves particularly advantageous for funds obliged to conduct a final stub audit before initiating the filing of deregistration documents which can secure material cost savings for the fund. This provision aligns with the recent regulatory enhancements for the deregistration of Cayman Islands funds governed by the revised Mutual Funds Act (as revised) and Private Funds Act (as revised), which came into effect on 17 August 2022. Contact our liquidations specialist, Carlos Bourgy, at the details located below to find out more on how to avoid paying stub audit fees, seeking an audit waiver upon commencing a voluntary liquidation and how the submission of the comprehensive voluntary liquidator’s report can help get the fund back into good standing for deregistration purposes.
Professional independent directors and specialist advisory firms are often appointed to navigate complex situations which arise where an entity enters a distressed situation, particularly when the entity is in the ‘zone of insolvency’ it becomes likely to be unable to pay its debts as they fall due. In such situations, the directors’ duties shift focus from shareholders to creditors as the company’s financial situation worsens. Specialist firms such as IMS provide experienced independent directors, often with professional insolvency and restructuring qualifications and expertise to help navigate these challenges.
Objective Advice from Independent Experts
We deliver solutions where other firms are often conflicted and cannot.
Diverse Expertise Across Multiple Disciplines
Our specialists have legal, business, and regulatory knowledge.
Tailored Solutions for Complex Situations
We provide customized strategies to navigate difficult cases.