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Conyers BVI litigants Richard Evans and Charles Goldblatt secure the appointment of interim liquidators over All Year Holdings Limited (“AYH”) at an urgent hearing in the BVI Commercial Court on December 20, 2021
Following AYH’s filing for Chapter 11 relief in the Federal Bankruptcy Court for the Southern District of New York in December 2021, Conyers was tasked with securing the appointment of Charlotte Caulfield and Paul Pretlove of Kalo BVI as “soft touch” joint provisional liquidators of AYH. Their appointment was sought to assist AYH in its ongoing restructuring efforts and, in particular, to support the Chapter 11 proceedings.
AYH operates as a holding company which, through its direct and indirect subsidiaries, focuses on the development, construction, acquisition, rental and management of income-generating residential and commercial properties in Brooklyn, New York . The group’s assets are valued at over US$1 billion and include a luxury hotel and luxury rental complex. The Company has approximately US$1.6 billion of secured and unsecured debt payable to bondholders. An informal restructuring had been underway since late 2020, with the appointment of a chief restructuring officer to the board and the suspension of trading of its stocks and bonds on the Tel Aviv Stock Exchange.
The Company has approximately US$1.6 billion of secured and unsecured debt payable to bondholders. An informal restructuring had been underway since late 2020, with the appointment of a chief restructuring officer to the board and the suspension of trading of its stocks and bonds on the Tel Aviv Stock Exchange.
On December 8, 2021, AYH voluntarily commenced a United States Code Chapter 11 action in the United States Bankruptcy Court, followed by a petition in the BVI Commercial Court under Section 170 of the BVI Insolvency Act 2003.
Judge Jack, commenting on the application, noted that “provisional liquidations are becoming more common due to the Constellation case”.
According to Judge Adderley in Constellation:
“The essence of a ‘soft touch’ provisional liquidation is that a company remains under the daily control of the administrators, but is protected against the actions of individual creditors. The aim is to give the Group the opportunity to restructure its debts, or otherwise obtain a better result for creditors than that which would be obtained by liquidation.”
The BVI Commercial Court has once again demonstrated both its willingness to grant aid in support of a restructuring process (abroad), the flexibility of its approach and the speed with which which such aid will be granted in the event of a real emergency (the request was heard within days of its issuance and in the last very busy week of the Commercial Court’s mandate).
Richard Evans and Charles Goldblatt were retained by AYH and worked alongside Weil, Gotshal & Manges LLP in New York (which led the Chapter 11 proceedings in the United States).
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