Insolvency 2025

BELIZE Law and Practice Contributed by: Tim Prudhoe, Nadia Chiesa and Lemelko Missick, Stanbrook Prudhoe

Stanbrook Prudhoe Third Floor Graceway House Graceway Plaza Providenciales Turks and Caicos Islands TKCA 1ZZ Belize Tel: +1 649 946 4300 Email: contact@spcaribbean.com Web: www.spcaribbean.com/

1. Overview of Legal and Regulatory System for Insolvency/Restructuring/ Liquidation 1.1 Legal Framework The Insolvency and Bankruptcy Act 2025 (“the Act”), which came into force on 1 September 2025, is Belize’s principal legislation governing corporate and individual insolvency and restructuring. It consolidates and modernises all previous insolvency laws, replac - ing the Bankruptcy Act and the insolvency provisions of the Companies Act, and establishes comprehen - sive statutory regimes for restructuring, administra - tion, liquidation, receivership and bankruptcy under the joint supervision of the High Court and the Finan - cial Services Commission (FSC). A transitional period, set out in Section 474 of the Act, ensures continuity by allowing existing proceed - ings, appointments and court orders made under prior legislation to remain valid and to be continued or con - cluded under the Act, provided they are not inconsist - ent with its provisions. This mechanism guarantees a smooth implementation of the new framework while preserving the integrity of actions taken before its commencement. 1.2 Types of Insolvency In Belize, the Act governs voluntary and involuntary formal judicial or statutory proceedings for financial restructuring, reorganisation, insolvency, receivership and liquidation. The Act provides for voluntary proceedings such as:

• voluntary liquidation; • a simplified debt restructuring programme; • creditor’s arrangements; • voluntary administration; and • bankruptcy by debtor application. Section 283 of the Act establishes a “simplified debt restructuring programme” for the purpose of provid - ing a simplified process for restructuring of debts of any eligible company that seeks to enter into such an arrangement with its creditors or any class thereof. Section 285 (1) provides that a company may at any time make an application in accordance with Sched - ule V to the official receiver to be accepted into the simplified debt restructuring programme. 1.3 Statutory Officers The Act establishes a structured framework for the appointment and duties of statutory officers who over - see restructuring, administration and insolvency pro - ceedings. These officers operate under court supervi - sion and play a central role in managing the debtor’s affairs, protecting creditor interests and ensuring orderly resolution of financial distress. Administrators (Sections 77–112) are appointed by the High Court to take control of a company in financial difficulty, with the objective of rescuing it as a going concern or achieving a better outcome for creditors. Once appointed, the administrator assumes manage - ment powers previously exercised by the directors. Under Section 86 (4) of the Act, directors must co- operate fully and provide all required information to assist in the administration process.

67 CHAMBERS.COM