Overview
1.1 Where would you place your jurisdiction on the spectrum of debtor- to creditor-friendly jurisdictions?
Bermuda can be described, for the most part, as a creditor-friendly jurisdiction. Secured creditors can generally enforce their security outside of the insolvency process, and the insolvency legislation is pro-creditor. It provides, in particular, for the right of an unsecured creditor with an unpaid debt to apply for an order that the corporate debtor be compulsorily wound up and its assets applied in satisfaction of its debts, and there is no statutory corporate rescue regime beyond the ‘Scheme of Arrangement’ (Scheme), discussed below.
Nevertheless, the Supreme Court has developed an insolvency practice, through…