CAYMAN ISLANDS Law and Practice Contributed by: Sarah Humpleby, Alexandra Franklin, Peter Kendall and Sam Hall, Walkers
2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft See 2.8.6 Costs, Fees and Taxes Relating to Deregis- tration . In addition, the fees payable to the CAACI for an export certificate of airworthiness are calculated at KYD100 per 500 kg of the maximum take-off weight of the aircraft to be exported. 2.8.14 Practical Issues Related to Deregistration of Aircraft Other than the points discussed here, there are no other known significant practical issues. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Part V of the Companies Act (as amended) (the “Com - panies Act”), supplemented by the Companies Wind - ing-Up Rules (2023 Revision) (”the CWR”), governs insolvency proceedings in the Cayman Islands. The relevant insolvency provisions apply to the wind - ing-up of companies – including certain foreign com - panies – as well as to the winding-up of exempted limited partnerships in the Cayman Islands by virtue of Section 36 of the Exempted Limited Partnership Act (as amended). Whilst a Cayman Islands scheme of arrangement is not a formal insolvency process, the restructuring and reorganisation of Cayman Islands companies is often achieved by implementing a scheme of arrangement pursuant to Sections 86 and/or 87 of the Companies Act (see also the descriptions on the appointment of provisional liquidators and/or restructuring officers in 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insol- vencies and Receivership ). 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership Voluntary Liquidation Voluntary liquidation can be utilised to wind up a company incorporated or registered in the Cayman Islands. In order to be voluntarily liquidated, the com - pany must cease its business activities, except where
necessary, to complete the winding-up, and each of the directors of the company must make a declaration of solvency within 28 days of the commencement of the voluntary liquidation stating that the company will be able to pay its debts in full in a period not exceed - ing twelve months. If a solvency declaration is not provided, the voluntary liquidator(s) must apply to the Cayman Court for an order that the voluntary liquida - tion continue under the Cayman Court’s supervision. The company′s directors are usually replaced by a voluntary liquidator on the commencement of a vol - untary liquidation, except where the company or the voluntary liquidator sanctions the continuance of the directors’ powers. There are no qualification require - ments for the role of voluntary liquidator, so any indi - vidual, including the company′s directors, may be appointed as voluntary liquidators. Importantly, a voluntary liquidator does not require the Cayman Court’s authorisation to exercise their pow - ers. Once the company′s affairs are wound up, its creditors are paid in full, and any remaining assets are distributed to shareholders. Official Liquidation Official liquidation is a court-supervised insolvency process where the aim is to collect, realise and dis - tribute the assets of the company to the company′s creditors and, where there are surplus assets, to its shareholders. As officers of the court, official liqui - dators must be qualified insolvency practitioners and are required to report to the Cayman Court and the company’s stakeholders on the affairs of the company and the steps taken to wind it up. A winding-up petition may be presented to the Cay - man Court at any time by the company, any of its creditors (including any contingent or prospective creditor or creditors) and any contributory. The right of creditors to present a winding-up petition is, how - ever, subject to any contractually binding non-petition clauses, and a petitioning contributory’s shares must be either: • fully paid; or
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