JPL - Cayman Island Law10 Dec 2019 21:40
Reading below law on JPL application, one would agree that the company meet the conditions for it, and will therefore be granted JPL:
Provisional liquidation
Objective. The purpose is usually to preserve and protect the company's assets until the hearing of a winding-up petition and the appointment of official liquidators.
Initiation. Section 104 of the Companies Law governs the appointment and powers of a provisional liquidator, who may be appointed by the court at any time after the presentation of a winding up petition but before the making of a winding-up order. In order for a company to make an application under section 104(3) of the Companies Law, the company must establish that it is, or is likely to become, insolvent. Once an application has been made under section 104(3), the company benefits from the statutory moratorium on proceedings being continued or commenced against it, during which time it can formulate and promote a scheme under section 86 of the Companies Law (or some other creditor arrangement).
Substantive tests. At present, section 104(3) only provides for an application for the appointment of a provisional liquidator to be made by the company itself and does not confer the same benefit on creditors, contributories or the Cayman Islands Monetary Authority (CIMA). While creditors, contributories and the CIMA can apply for the appointment of provisional liquidators under section 104(2) of the Companies Law, they must, under that provision, also demonstrate that there is a prima facie case to wind up the company and that the appointment is necessary to prevent:
The dissipation of assets.
Oppression of minority shareholders.
Mismanagement or misconduct by the company's directors.
Consent and approvals. Provisional liquidators are appointed by the court and the consent of stakeholders is not required.
Supervision and control. Provisional liquidators are appointed. They are subject to the court's supervision and only carry out the functions that the court confers on them. Their powers may be limited by the order appointing them, and the scope of their powers depends on the reason for their appointment. If a company restructuring is proposed, existing management can be allowed to remain in control of the company subject to the supervision of the court and provisional liquidators.
Protection from creditors. On the appointment of a provisional liquidator, no suit, action or other proceeding can be continued or commenced against the company without the court's leave. This automatic stay does not prohibit secured creditors from enforcing their security. There are no statutory implications relating to existing intellectual property licences.
Length of procedure. If the purpose of a provisional liquidation is to enable a restructuring of the company's affairs, the hearing of the winding-up petition for a fixed period (which can be extended if necessary) is usually adjourned to provide sufficient time to achieve this. Cont>
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