Cayman Islands: CHC Group foreign proceeding approval sought
BY
CHC Group filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing a Debtor affiliate to commence a foreign an ancillary proceeding in the Cayman Islands with respect to CHC Parent’s estate.
The motion explains, “As a result of CHC’s global operations and the anticipated need to pursue ancillary proceedings in foreign jurisdictions to effectuate the Debtors’ reorganization, the Debtors sought and received an order authorizing CHC Parent to act as foreign representative on behalf of the Debtors’ estates in any ‘foreign jurisdiction in which the Debtors determine it is necessary to commence an ancillary proceeding.’….The use of a provisional liquidation within a winding-up proceeding is a common means of implementing a cross-border restructuring in the Cayman Islands.”
The motion continues, “Pursuant to recent Cayman Islands case law, it appears that CHC Parent cannot petition for its own winding up. In the circumstances, to enable CHC Parent to seek relief before the Cayman Court to assist with the implementation of the chapter 11 plan, it is intended that an intercompany creditor of CHC Parent will commence the winding-up proceeding, after which CHC Parent (acting by its directors) will apply for the appointment of joint provisional liquidators within the creditor-commenced proceeding.” The Court scheduled a January 6, 2016 hearing to consider the motion, with objections due by December 30, 2016.
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