Jersey is a British Crown dependency with its own legislature and independent legal system. Much of the insolvency regime is based on modern and adaptable insolvent and solvent winding-up processes which will be familiar to English and other common law practitioners.
Companies (Jersey) Law 1991 (the Companies Law) is the principal legislation governing company restructuring, schemes of arrangement, solvent and insolvent winding-up of Jersey companies.
Bankruptcy (Désastre) (Jersey) Law 1990 (the Désastre Law) and the Bankruptcy (Désastre) (Jersey) Rules 2006 (the Désastre Rules) codify the insolvency process of désastre, a court-ordered form of winding-up carried out by an officer of the court known as the Viscount. Désastre may be applied for either by the company itself or by a creditor. The Désastre Law also, amongst other things, codifies assistance from the Jersey courts to foreign courts and foreign office holders.
Bankruptcy (Netting, Contractual Subordination and Non-Petition Provisions) (Jersey) Law 2005 (the Bankruptcy Law) provides that netting, contractual subordination and non-petition provisions are enforceable following liquidation, thereby giving certainty to parties entering into derivative contracts and other agreements.
Incorporated Limited Partnerships (Jersey) Regulations 2011) (the Limited Partnership Regulations) and the Limited Liability Partnerships (Dissolution and Winding Up) (Jersey) Regulations 2018 (the Limited Liability Partnership Regulations) govern how incorporated limited partnerships and limited liability partnerships are wound up in insolvent circumstances.
Judgments (Reciprocal Enforcement) (Jersey) Law 1960 (the Enforcement Law) provides that foreign money judgments emanating from superior courts of England and Wales, Scotland, Northern Ireland, the Isle of Man and Guernsey are (subject to certain conditions) recognised and enforceable in Jersey. The Enforcement Law co-exists alongside a customary law recognition and enforcement regime.
We are grateful to Stephen ALEXANDER from Mourant and INSOL Europe Country Coordinator for Channel Islands and Andrew BRIDGEFORD from Mourant for sharing this relevant information.
Update: April 2024
NB: Please note older forms of Jersey insolvency proceeding – remise de biens, dégrèvement and réalisation – are rare, unlikely to be encountered in an international context and are, as such, not covered here.