Insolvency

Foreign office holders cannot act in Jersey without a court recognition order.

Such an order is a valuable weapon in an office holder’s armoury both in cross-border insolvencies and in fraud and asset recovery investigations.  There are a limited number of countries who benefit from a specific regime under the Bankruptcy (Désastre) Law 1990; for other countries a common law regime applies. The Baker & Partners’ team regularly obtain such recognition orders and are extremely familiar with the procedures required both under statute and common law.

Dégrèvement is a debt recovery procedure against Jersey land. It is an archaic remedy with complex and cumbersome procedures – nevertheless, because of deficiencies in other methods of enforcement, it remains the most common way to enforce debts secured on property.

Désastre is the Jersey equivalent of personal and corporate insolvency. It is the only method which creditors (as opposed to the company itself) can use to bankrupt an individual or corporate body.  It is governed by the Bankruptcy (Désastre) Law 1990. Our lawyers have extensive experience in advising creditors on the advantages and disadvantages of issuing désastre proceedings against either companies or individuals to enforce a debt or judgment, whether arising in Jersey or overseas.

Creditors can commence winding-up procedures under the Companies Law including summary winding-up for solvent companies. There is no equivalent in Jersey of the English law concept of administration but companies have been wound-up in Jersey under the “just and equitable” winding-up provisions in the Companies Law in circumstances where an equivalent of administration is required (for example: to enable a business to be carried on as a going concern pending any sale).  The “just and equitable” route has also been used for the “pre-pack” sale of a business.

There are various ways in which “vulnerable” transactions, which pre-date an insolvency, may be set aside during insolvency proceedings. This includes where they appear to have been either at an undervalue or in the nature of a preference.