British Virgin Islands: restructuring and insolvency
The chapter is written in an easy to use Q&A format. Key questions answered in the chapter include:
- What forms of security can be granted over immovable and movable property? What formalities are required and what is the impact if such formalities are not complied with?
- What is the test for insolvency? Is there any obligation on directors or officers of the debtor to open insolvency procedures upon the debtor becoming distressed or insolvent? Are there any consequences for failure to do so?
- What insolvency procedures are available in the jurisdiction? Does management continue to operate the business and/or is the debtor subject to supervision? What roles do the court and other stakeholders play? How long does the process usually take to complete?
- How do creditors and other stakeholders rank on an insolvency of a debtor? Do any stakeholders enjoy particular priority? Could the claims of any class of creditor be subordinated?
- What restructuring and rescue procedures are available in the jurisdiction, what are the entry requirements and how is a restructuring plan approved and implemented? Does management continue to operate the business and/or is the debtor subject to supervision? What roles do the court and other stakeholders play?
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