09/06/21

Creditors’ Ability to Challenge Liquidators

In the Cayman Islands, it is axiomatic that an insolvent liquidation is carried out for the benefit of the company’s creditors. But that does not mean that a winding up is a creditors’ democracy. The official liquidator, appointed by and answerable to the court, will exercise their own best judgment as to what needs to be done and how to do it. When creditors disagree with the liquidator, Cayman law relies on a mix of statute, convention, and practice to resolve those disputes.

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