Zoë Hallam
Group Partner*
Guernsey
key takeaways
In September 2020, only months into what we now know was to become a two-year Global Pandemic, we looked at what Covid-19 might mean for businesses and their creditors. At that time we had seen some high profile casualties – Debenhams, DW Sport, Monsoon, Laura Ashley and Virgin Media – and were anticipating further defaults and insolvencies in a number of sectors of the UK economy.
Whilst there certainly was distress, government support (in the form of CBILS and rent moratoria, amongst other measures) and a general theme of creditor forbearance was, in many cases, sufficient to prop up businesses throughout the duration of the pandemic.
However, as we emerge from the Global Pandemic, the impact of the conflict in Ukraine poses further global concern and rising energy prices are putting businesses under extreme pressure. Inflation, increasing interest rates in a bid to combat such inflation, the cost-of-living impact on consumer spending and supply chain issues (coming out of Covid) are also adding to a worsening economic climate.
In light of the above we expect creditors to be increasingly examining enforcement options alongside continuing to pursue consensual work-outs to combat distress.
Given the popularity of Jersey and Guernsey holding structures for investment into the UK, secured creditors with exposure to such structures will need legal advice in those jurisdictions where enforcement strategies are being considered.
Enforcement of share security over Jersey or Guernsey companies in those structures will generally be one of the enforcement options.
With that in mind, it is a good time for secured creditors with Jersey and/or Guernsey share security to consider steps that they can take now to make a future enforcement of that security as efficient as possible.
Such steps include:
In September 2020, only months into what we now know was to become a two-year Global Pandemic, we looked at what Covid-19 might mean for businesses and their creditors. At that time we had seen some high profile casualties – Debenhams, DW Sport, Monsoon, Laura Ashley and Virgin Media – and were anticipating further defaults and insolvencies in a number of sectors of the UK economy.
You can read our full notes on the enforcement of Jersey and Guernsey share security here:
The Walkers Restructuring and Insolvency team has been consistently ranked as the offshore market leaders, with teams in the Asian, Caribbean and European timezones advising on Bermudan, BVI, Cayman, Guernsey, Irish and Jersey law. The Jersey team has acted on one of the very few known enforcements of share security under the Security Interests (Jersey) Law 2012 and so have valuable practical experience on enforcement under what is a relatively new piece of legislation.
Authors
Group Partner*/Guernsey
Group Partner/Guernsey
Group Partner*/Guernsey
Partner, Walkers (CI) LP/Jersey
Partner, Walkers (CI) LP/Jersey
Senior Counsel/Jersey
KEY CONTACTS
Group Partner*
Guernsey
Group Partner
Guernsey
Group Partner*
Guernsey
Partner, Walkers (CI) LP
Jersey
Partner, Walkers (CI) LP
Jersey
Senior Counsel
Jersey
Senior Counsel
Jersey