First captive restored following liquidation in Guernsey
The Royal Court of Guernsey has restored a captive insurance company that had been dissolved following liquidation for the first time ever.
Carey Olsen’s restructuring and insolvency team succeeded in applying for the restoration of K2 Insurance, enabling the company to subsequently recover a substantial asset.
Advocate David Jones and associate Harry Stirk acted for Ian Damarell of BDO, the liquidator of K2.
Previously, it was not possible in Guernsey to restore a company that had been dissolved following liquidation, whilst it was possible to restore a company that had been struck-off as a result of administrative failings or voluntarily.
The Companies (Guernsey) Law, 2008 (Amendment) Ordinance 2014, which came into force on November 2, 2014, changed the position.
Jones said: “This case was the perfect example of the benefits of the latest changes to the legislation. The liquidator diligently performed his role prior to dissolution. When new assets came to light he was enabled to return further value to the former members of K2 by restoring it.
“In light of the ability to restore dissolved companies, it is now more important than ever for companies to ensure that they conduct the winding up process thoroughly and that they consider utilising the services of experienced professional advisors.”