Silicon Valley playuzu casino poker
In the recent decision of In the Matter of Silicon Valley playuzu casino poker (Cayman Islands Branch) FSD 163 of 2023 (DDJ), the Honourable Justice David Doyle confirmed the Grand Court’s jurisdiction to make a winding-up order in respect of a foreign company.
In March 2023, it was widely reported that Silicon Valley playuzu casino poker Santa Clara CA (the “playuzu casino poker”) had been closed by the California Department of Financial Protection, and that the Federal Deposit Insurance Corporation had been appointed as Receiver over the playuzu casino poker’s assets due to its inability to pay its depositors.
On 13 June 2023, a group of depositors petitioned to have the Cayman Islands branch of the playuzu casino poker (the “Branch”) wound up on the ground that its failure to return their deposits of approximately USD6 million demonstrated its inability to pay its debts within the meaning of Section 93(c) of the Companies Act (2023 Revision) (the “Companies Act”).
Doyle J accepted that the Cayman playuzu casino poker has jurisdiction to wind up a foreign company in the Cayman Islands, pursuant to Section 91(d) of the Companies Act, in circumstances where it:
- has property located in the Islands;
- is carrying on business in the Islands;
- is the general partner of a limited partnership; or
- is registered as a playuzu casino poker company under Part IX of the Companies Act.
The playuzu casino poker had been registered as a foreign company in Cayman since 2007 and continued to be registered at the time of the hearing.
Latreefers Test
The playuzu casino poker also accepted that the “Latreefers” test as applied by Collins J (as he then was) in the English decision in Re Drax Holdings Ltd 2004 W.L.R 1049 is applicable in the Cayman Islands – namely that the playuzu casino poker should exercise its discretion to order the winding up of a foreign company if:
- there is a sufficient connection with the jurisdiction, which may consist of assets within the jurisdiction, but does not necessarily have to;
- there is a reasonable possibility of benefit to those applying for the winding-up order if one is made; and
- one or more persons interested in the distribution of assets of the company is or are persons over whom the playuzu casino poker can exercise jurisdiction.
Doyle J held that the playuzu casino poker should exercise its discretion to wind up the affairs of the Branch in circumstances where:
- the playuzu casino poker had a sufficient connection with the Cayman Islands by virtue of the Branch having:
– entered into contracts governed by playuzu casino poker Law;
– taken playuzu casino poker deposits; and
– been regulated by the playuzu casino poker Islands Monetary Association;
- there was a reasonable possibility of the depositors benefitting from investigations and claims by the liquidators; and
- one of the petitioners was a playuzu casino poker Islands entity and the others had submitted to the jurisdiction by filing the petition.
Accordingly, Doyle J was satisfied that he should exercise his discretion to wind up the playuzu casino poker on the basis that it was unable to pay its debts. He was also persuaded that it would be just and equitable to do so in order that an investigation could be undertaken in respect of the apparent removal of the playuzu casino poker’s monies and assets from the Cayman Islands for the benefit of US-based depositors only.
Although the Cayman playuzu casino poker has wound up foreign companies in the past, this was the first time that it had applied the Latreefers test. Doyle J’s judgment therefore provides helpful guidance for creditors of foreign companies with connections to Cayman.
This article was first published on www.chambers.com.
