Creditor-Driven Winding Up Regime Introduced in Jersey

The right of a creditor who is owed a liquidated debt that is not subject to a bona fide and substantial dispute to have the debtor company wound up if that debt is not paid in accordance with its terms is fundamental to the proper functioning of any modern financial system.

The existence (or absence) of an efficient creditor-driven winding up regime can have a marked impact on the way in which stakeholders (whether creditors or investors) assess investment opportunities, including on the decisions as to which form of structure to use, the type of investment they elect to effect, and the protections they seek to build into their investment agreements.

A creditor-driven winding up regime, and the associated consequences of a winding up application being filed, and/or a winding up order being made, also materially influences the way in which directors and / or controlling shareholders conduct themselves in periods of financial stress or distress.

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JERSEY
Nigel SandersPartnerT +44 (0) 1534 700 862nigel.sanders@walkersglobal.com
Marc SeddonPartnerT +44 (0)1534 700 761marc.seddon@walkersglobal.com
Fraser HernGroup Partner*T +44 (0) 20 7903 8702fraser.hern@walkersglobal.com
James TurnbullSenior AssociateT +44 (0)1534 700 776james.turnbull@walkersglobal.com
Claire BarbesolAssociateT +44 (0) 1534 700 899claire.barbesol@walkersglobal.com

LONDON
Fraser HernGroup Partner*T +44 (0) 20 7903 8702fraser.hern@walkersglobal.com