Bermuda - Clawbacks in Insolvency

Fraudulent Preferences and Conveyances under the Bermuda Companies Act 1981

Creditors should exercise caution when negotiating payment terms, asset transfers or securitisation transactions with companies which are in the zone of insolvency. Such transactions are vulnerable to being set aside by liquidators or by other creditors in the event of the insolvency of the company. The purpose of Bermuda’s reviewable transactions law is to uphold the pari passu basis for the distribution of a company’s assets amongst its unsecured creditors in an insolvency context.

Click to view advisory