1. Provisional Liquidators Appointed Pending Arbitration (Peakwave)
In Peakwave Investment Management Ltd v Energy Evolution GP Ltd [2026] CIGC (FSD) 7, the Financial Services Division (FSD) of the Grand Court delivered a leading judgment on the intersection between mandatory arbitration clauses and protective winding-up remedies.
While staying a shareholder's just and equitable winding-up petition under Section 4 of the Foreign Arbitral Awards Enforcement Act in favour of HKIAC arbitration, Justice Parker held that the stay does not strip the Grand Court of its jurisdiction to appoint provisional liquidators. The Court confirmed that provisional liquidation remains available as an interim protective remedy to prevent asset dissipation while an arbitral tribunal adjudicates substantive contractual disputes.
2. Statutory Restructuring Officer (RO) Moratorium Active
Insolvency practitioners operating across the Cayman Islands continue to deploy the statutory framework under the Companies (Amendment) Act and the Insolvency Practitioners' Regulations. Key operational aspects include:
- Automatic Statutory Moratorium: Filing an RO petition triggers an immediate moratorium against unsecured creditor claims and winding-up petitions without requiring a separate court order.
- Secured Creditor Rights Preserved: Fixed charge holders retain their statutory right to enforce security over Cayman assets without leave of the court.
- Sources: Read Mourant's analysis on Cayman Grand Court Appoints Provisional Liquidators Notwithstanding Arbitration Stay and Global Advisory Experts' guide on Cayman Islands Insolvency Reforms: Practical Guide for Directors and Fund Managers.
Cayman Islands: Provisional Liquidations Pending Foreign Arbitration & Statutory Restructuring Officers