Cayman Court of Appeal clarifies the scope of the international co-operation provisions of the Companies Law
- Section 241(1) is intended to be an exhaustive list of the Court's statutory powers to grant ancillary relief in aid of a foreign bankruptcy proceeding.
- Section 241(e) does not constitute a power to make orders for the purposes of setting aside antecedent transactions and ordering the repayment of money to the debtor. The Judge found that the phrase property belonging to a debtor, relates only to property (such as money in a bank account) belonging to a company prior to the commencement of its liquidation. It did not therefore include property which is recoverable only by an officeholder pursuant to the transaction avoidance provisions of the applicable insolvency law. Such property would be property of the estate.
Published April 29, 2014
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