BVI Corporate Insolvency

Richard G. Evans • Posted 30/09/2009 • Under Articles

BVI CORPORATE INSOLVENCY: DOES THE SUN ALWAYS SHINE ON CREDITORS?

There is a real risk in labelling a jurisdiction as "pro-creditor" or "pro-debtor". It is a risk of peculiar application to practitioners based in the jurisdiction in question. Such a label is quite capable of conjuring up, in the eyes of outside parties - and prospective clients - the fear that should you be in the other camp, for example a creditor in the land of debtors, then at best you may receive a rough ride, and at worst, there may be no point in even setting foot in the jurisdiction (figuratively speaking) for fear of having no prospect whatsoever of achieving a desirable outcome.

This article seeks to develop the theme that the BVI insolvency regime, both through its legislative design and also the judicial application of that regime, is one that is particularly focussed toward the needs of creditors. Debtors have nothing to fear from this, if they bear the essential premise in mind and obey strictly the rules of the game.