The immediate aftermath of the collapse of Enron, and the alleged use of offshore special purpose vehicle (SPV) structures to hide, disguise or wrongly re-characterise corporate debt, led to a great deal of unnecessary speculation about the future of Cayman Islands SPVs.
The Cayman Islands has always been, and remain, an attractive jurisdiction for securitisation and other structured finance deals. The legal and tax regime is well suited for establishing and operating SPV transactions. Cayman Islands’ law is based on, and generally very similar to, English law so issues relating to the creation and enforceability of security interests, creditors rights, corporate power, limited liability and directors’ duties are familiar to most market participants.
