Cayman Communication: The Grand Court of the Cayman Islands Approves Direct Court-to-Court Communications Protocol for the First Time In Re LATAM Finance Limited (and others)

As a prominent offshore financial centre, the Cayman Islands continues to embrace its commitment to the cooperation and facilitation of cross-border insolvencies and restructurings. As the Cayman Islands is a traditional common law jurisdiction, with the foundation of its legal system based on a fusion of common law and legislation, it has the inherent flexibility to adapt to circumstances on a case-by-case basis. In the context of cross-border insolvency and restructuring, the rules of private international law and conflict of laws have not been codified and cannot be discerned in a single set of statutory rules.

Recently, as part of the on-going restructuring of the LATAM Airlines group, the Grand Court of the Cayman Islands (the ‘Court’) approved applications made by the joint provisional liquidators of certain of its Cayman Islands group companies for the entry into a direct cross-border court-to-court communications protocol (the ‘Protocol’) with the courts of New York, Chile and Colombia. 

While the importance of court-to-court communications has been a key feature of international insolvency and restructuring for some time, this is the first occasion where the Court has handed down a judgment approving a protocol to facilitate direct court-to-court communications.

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This article first appeared in Volume 17, Issue 6 of International Corporate Rescue and is reprinted with the permission of Chase Cambria Publishing


CAYMAN ISLANDS
Neil LuptonPartnerT +1 345 914 4286neil.lupton@walkersglobal.com
Marc HechtAssociateT +1 345 914 4293marc.hecht@walkersglobal.com
Zoë NolanAssociateT +1 345 914 6344zoe.nolan@walkersglobal.com