Kalo appointed as joint provisional liquidators of All Year Holdings Limited

January 2022

 

Following an urgent application to the BVI Court on 20 December 2021, Charlotte Caulfield and Paul Pretlove have been appointed as joint provisional liquidators of All Year Holdings Limited (AYH). This follows AYH’s filing for Chapter 11 relief on 8 December 2021 in the Federal Bankruptcy Court of the Southern District of New York.

 

AYH operates as a holding company that, through its direct and indirect subsidiaries, focuses on the development, construction, acquisition, leasing and management of residential and commercial income producing properties in Brooklyn, New York, United States with the group’s assets valued at over US$1bn. The Company had been undergoing informal restructuring since the early part of 2021, with the appointment of a Chief Restructuring Officer to the Board and the suspension of trading of its shares and bonds on the Tel Aviv stock market (ticker ALYR).  The Company has some $1.6 billion of secured and unsecured debt payable to bondholders.

 

Justice Jack, upon considering the application commented that “provisional liquidations are becoming more common due to the Constellation case.” 

 

In 2018, Constellation Overseas Limited (and its five subsidiaries), was the first ever company to which soft-touch liquidators were ordered to be appointed, by the BVI High Court (Commercial Division) with Paul Pretlove being one the joint provisional liquidators appointed. A provisional liquidation, is a practical evolution of the BVI’s legislative framework which enables which is effectively “debtor in possession” procedure, similar to a Chapter 11 relief in the US, whereby certain incumbent directors of the Company are appointed as “authorised managers” to conduct prescribed roles on behalf of the joint provisional liquidators.  The debtor company benefits from an effective stay on litigation and enforcement procedures being made against it, as a consequence of the making of the appointment of the provisional liquidators whilst enabling the debtor company to restructure its position, for the intended purpose of achieving a better commercial outcome for the stakeholders, and at a lower procedural cost, than would be otherwise achieved if the debtor company was simply placed into full blown liquidation proceedings.

 

Kalo has unrivalled experience in leading large-scale, cross border restructuring having led three out of the four "soft touch" provisional liquidations in BVI. Business owners and advisors who are seeking urgent advice in relation to the restructuring of BVI entities should contact Kalo for prompt and proactive advice.

 

The BVI’s High Court (Commercial Division) has again shown its willingness to grant relief to support a restructuring and coupled with the speed with which the application was listed and dealt with, ahead of the Court’s holiday pause, highlights the sophistication and agility of it.