The offshore world is competitive and creditors of companies based in offshore jurisdictions need to know that their interests will be protected in the event of insolvency. The continued flexibility of the royal court of Jersey shows that it remains a creditor-friendly jurisdiction in these turbulent times.
The ability of creditors to wind up an insolvent debtor company and to appoint an office-holder to realise its assets, without being hindered by the company implementing protective insolvency proceedings (such as Chapter 11 in the US or the safeguard procedure in France), has tended to be the hallmark of a creditor-friendly offshore jurisdiction. However, the recent fall in worldwide property prices has meant that ‘pulling the plug’ is no longer always the creditors’ preferred option.
