NASSAU, BAHAMAS — Attorney General Ryan Pinder claimed the Baha Mar and FTX cases are examples of The Bahamas’ effective handling of cross-border insolvencies, underscoring the country’s legal expertise and its reputation as a reliable jurisdiction for international business.
Speaking at the INSOL International Bahamas Seminar on Tuesday, Pinder also announced plans for a project to reform the country’s insolvency laws. The project aims to position the Bahamas as a “near-shore” rather than an “offshore” jurisdiction and give multinational companies confidence to do business there.
INSOL, a UK-based professional body focused on insolvency, restructuring, and bankruptcy, partnered with the Restructuring and Insolvency Specialist Association (RISA) of The Bahamas and Caribbean professionals to host the seminar.
Pinder noted that The Bahamas has long been a jurisdiction where cross-border structuring occurs and international businesses operate, including complex loan arrangements. As such, the country has seen its share of insolvencies and related administrations. He referred to the Baha Mar insolvency as an “inter-jurisdictional case study” and pointed to the collapse of crypto giant FTX, which was headquartered in The Bahamas at the time.
“These two examples demonstrate not only the capacity of The Bahamas, its laws, judiciary, and practitioners to participate successfully in complex cross-border insolvencies, but also should instill confidence in The Bahamas as a jurisdiction for cross-border business. These are just two examples of several historical major insolvencies that have taken place in The Bahamas, many of these being financial institutions,” said Pinder.
He further emphasized the need for insolvency law reform, noting that, despite the country’s success in handling major insolvency matters, international regulatory reforms have led to new challenges. “The Bahamas is an established financial center. In recent years, we have been subject to international regulatory reforms, including regimes for economic substance and global minimum corporate income tax,” Pinder explained. “Given these reforms, we are looking to reposition The Bahamas as not only a jurisdiction for structuring and wealth management but also one that is attractive to international businesses.”
An essential part of this repositioning, he said, is creating a predictable and business-friendly insolvency regime that encourages reorganizations and continuity in business operations.
“We have launched a project to reform our insolvency laws in The Bahamas to ensure that as we position the jurisdiction as a ‘near-shore’ rather than an ‘offshore’ jurisdiction, we have the legislative infrastructure to give multinational companies the confidence to do business here. We have started the process, already securing benchmarking analysis of different jurisdictions. We also look to engage one of your fellows to assist in the analysis and, ultimately, the framework of a new insolvency regime. We look forward to being a jurisdiction of choice for multinationals wanting a business-friendly experience with a modern legislative regime where they can have confidence in the insolvency framework. Predictability, ease of administration, and a focus on reorganization and continuity should be the focus,” said Pinder.
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