First published by Global Legal Group, January 2021.
The subscription credit and fund finance markets have remained
relatively robust over the course of 2020, though the COVID-19
pandemic has presented certain challenges for market participants.
Growth in this area over the past few years was driven in part by
expansion of the product into a broader range of fund types,
increasing take-up by fund sponsors who had not traditionally used
the product in their fund families, record levels of fundraising
and an increasing number of net asset value (NAV) facility
closings.
Overview
While certain banks have continued to increase their book of
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The subscription credit and fund finance markets have remained
relatively robust over the course of 2020, though the COVID-19
pandemic has presented certain challenges for market participants.
Growth in this area over the past few years was driven in part by
expansion of the product into a broader range of fund types,
increasing take-up by fund sponsors who had not traditionally used
the product in their fund families, record levels of fundraising
and an increasing number of net asset value (
NAV)
facility closings.
Overview
While certain banks have continued to increase their book of
schemes of arrangement.
It is also possible for receivers to be appointed over Cayman
Islands companies, either by the Grand Court or by a creditor of
the company with suitable security.
2.3 Obligation to Commence Formal Insolvency
Proceedings
If a Cayman company is insolvent or of doubtful solvency, its
directors have a fiduciary duty to act with regard to the interests
of its creditors. Therefore, in these circumstances they must have
regard to whether it is in creditors interests for insolvency
proceedings to be instigated.
Directors also have a duty to commence insolvency proceedings if
directed to do so by a resolution of the shareholders or a