Restructuring and insolvency guide – Lexology

This article answers key questions regarding restructuring and insolvency in Guernsey.

Domestic procedures

Question

Answer

What are the principal insolvency procedures for companies in Guernsey?

The principal insolvency procedures are liquidation (winding up) and administration.

A scheme of arrangement procedure can also be used for a company to come to an arrangement with creditors.

Are any of the procedures available on a provisional basis?

Yes. Compulsory liquidation can be made on a provisional basis.

What requirements must be satisfied for the procedures to be pursued?

Compulsory liquidation

The main reasons are that a company cannot pay its debts or that it is just and equitable to do so. A recent Guernsey case has also seen a company wound up because it failed to

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