Fewer companies wound up operations in Cayman last year as opposed to 2016.
These are the findings of the Offshore Corporate Insolvency Restructuring Annual Review 2017 compiled by Appleby’s.
For 2017 40 companies filed insolvency petitions in the Cayman’s jurisdiction, as opposed to 70 in 2016.
Dispute resolution partner at the firm, Tony Heaver-Wren, says decreases or increases in insolvency petition filings are more likely to affect insolvency and restructure professionals and not the wider economy.
This is because the firms winding up are international and are not Caymanian.
“Very few of the petition filings have been for local enterprises. Instead, they are enterprises based around the world that are structured through Cayman and so that there is not really a negative, it is in fact very much a positive for Cayman,” Mr. Heaver-Wren said.
Mr. Heaver-Wren foresees an economic correction within the next two years, which means difficult economic times and therefore more insolvency petitions.
He said this will increase the workload for insolvency and restructuring professionals, as well as, give young Caymanians in law school, the opportunity to gain experience in the field.