The Cayman Islands Aircraft Registry A first class experience
- Remedies: all remedies available to creditors and lessors under the Cape Town Convention which are not expressed to require application to the court may be exercised without leave of the court.
- Cooperation with foreign courts: the Cayman Islands courts will co-operate to the maximum extent possible with foreign courts and foreign insolvency administrators in carrying out insolvency remedies set out in the Protocol.
- Speedy relief pending final determination: the
- Alternative A: on the occurrence of an insolvency related event, the debtor (or insolvency administrator) shall (subject to certain conditions) give possession of the aircraft no later than at the end of a 60 calendar day waiting period.
- if it transpired that the Cape Town Convention did not actually apply to the aircraft mortgage;
the debtor refused consent to registration with the International Registry (whereas the debtor’s consent is not necessary to register an aircraft mortgage on the Mortgage Register); or
the creditor or lessor wishes to have available to it additional remedies which may be available under domestic Cayman Islands law but not under the Cape Town Convention.there is a likelihood that the aircraft may need to be repossessed in a non-Cape Town Contracting State (which may not recognize the concept of an ‘international interest’ but will recognize the concept of a registered mortgage);
The domestic registrations on the Mortgage Register remain relevant for mortgages over aircraft objects that do not meet the requirements under the Cape Town Convention.- From a practical perspective, CAACI has embraced the requirements and spirit of the Cape Town Convention. For example, the Cape Town Convention allows lenders and lessors to register an Irrevocable De-registration and Export Request Authorisation (IDERA), which facilitates the exercise of one of the remedies a creditor may exercise in the case of a default. CAACI readily accepts filings of IDERAs with the Aircraft Registry for Cayman Islands registered aircraft.
Up, up and away…
The much anticipated extension of the Cape Town Convention to the Cayman Islands has been welcomed with open arms by financiers, lessors and aircraft owners. The potential cost savings and protections afforded by the Cape Town Convention has fortified the Cayman Islands’ position as an offshore market leader in both commercial and corporate jet financing and as an aircraft registry of choice. We expect that the jurisdiction will go from strength to strength as an aircraft finance industry leader and continue to set the pace as a first class aircraft registry. ■
ABOUT THE AUTHORS
Danielle Roman is a partner at Mourant Ozannes, and is an experienced banking and finance specialist, advising on a broad spectrum of transactions, including asset finance (in particular aircraft and shipping), acquisition and leveraged finance, debt restructurings, project finance, real estate finance, securitisation and general corporate lending.
Tracey Forbes is an associate (registered with the Hong Kong law society as a Legal Assistant) in Mourant Ozannes’ Hong Kong office. Tracey has a broad range of experience in banking and finance matters.
Mourant Ozannes has an international reputation as having one of the leading offshore aircraft finance practices, advising on the laws of the Cayman Islands, BVI, Jersey and Guernsey.
SOURCE: http://www.mourantozannes.com/publications/the-cayman-islands-aircraft-registry-a-first-class-experience.aspx
Published June 9, 2016
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