Jersey introduces new corporate administration regime

The Companies (Jersey) Amendment No. 2 Law 2026 (the Amendment Law) will come into force in Jersey on 19 June 2026, introducing a new tool for the restructuring and insolvencies of Jersey companies. 

The Amendment Law will provide for a statutory administration regime that will enable a distressed Jersey company to apply to the Royal Court to enter a process where the outcome may result in the rescue of the company as an ongoing concern or otherwise provide a better outcome for creditors rather than winding-up and liquidation.

The new regime will be familiar to practitioners in the UK and elsewhere, as the new regime in Jersey is similar to, but not identical to, both the administration regime in the UK under the Insolvency Act 1986 and international jurisdictions such as Guernsey.

In particular, the Jersey regime seeks to retain balance between the desire to rescue the company as a going concern versus the rights of secured creditors throughout, providing, for example, the ability to enforce security despite any statutory moratorium.  

What was the previous position in Jersey? 

The two main corporate insolvency processes in Jersey before the Amendment Law came into effect were the Désastre and Creditors' Winding Up process, both of which lead to the winding-up and liquidation of the relevant Jersey company. Neither of these corporate insolvency processes were able to rescue the company as a going concern.  

Where there was a desire to rescue a company as a going concern, or where administration would otherwise produce a better outcome, an insolvent Jersey company could in certain circumstances (for example, where there was significant UK nexus such as management and control or UK assets) be placed into an English administration, with either the Jersey Court on application issuing a letter of request to the English courts or, if the Jersey company's centre of main interests (as applied in England), by applying directly to the English courts and then having any order recognised by the Jersey Courts.  

However, this procedure was not guaranteed and resulted in a potential lack of certainty for lenders as the Jersey Courts could refuse to grant a request. This was the case in Harbour Fund II LLP v ORB a.r.l and Litigation Capital Funding, as we explain in our briefing Putting Jersey companies into English administration – the back door is left shut. 

Importantly, the new Jersey administration regime now achieves that certainty without the need for mutual recognition between courts. 

Key points for secured creditors 

Creditors will be familiar with the considerations of a UK administration where, except in very limited circumstances, there is a moratorium on any action being taken against the company and, therefore, in enforcing any security.  

The Jersey administration regime has been designed from the outset to include significant protections for secured creditors (being a person with security over the whole or any part of the company), namely, that a secured creditor, among other things: 

• can enforce their security or otherwise exercise contractual rights under the security agreement 

• is entitled to notice before any application for an administration order is heard, allowing its voice to be heard on whether the administration should go ahead or to any preference for administrator 

These key protections mean that administration under the Jersey administration regime provides robust protection, certainty and predictability for secured creditors, where under similar regimes elsewhere, their rights may otherwise have been weakened under the statutory moratorium. 

However, in all cases, secured creditors must still be vigilant. Searches can be carried out at the Judicial Greffe in Jersey as to whether any administration order has been made. Where it is anticipated that the company is insolvent, or in the zone of insolvency with administration being considered likely, it is essential to engage as early as possible with the administrator or proposed administrator to ensure that their voice is heard. The administrator will work with creditors to ensure that the collateral is adequately protected and there are no roadblocks to enforcement.   

What is the process? 

The application for administration order

An application for an administration order can be made by: 

• the company (which includes an incorporated cell company or an incorporated cell 

• creditors having a liquidated claim for not less than the prescribed minimum (currently £3,000) 

• the Minister for External Relations (to safeguard the public interest) 

Notice of the application must then be given to certain parties, which will include secured creditors, prior to the application being heard and to allow such parties to make representations (for example, as to whether an order should or should not be made or as to who any administrator should be). 

The Royal Court has discretion as to whether or not to grant the order but must, in all circumstances, be satisfied that the company is, or is likely to become, insolvent, and if the order is reasonably likely to achieve one or both of the following: 

• the rescue of the company (or its business) as a going concern, or 

• a more advantageous realisation of the company’s assets than in a winding up 

It should be noted that the Royal Court cannot make an order if the company has already been declared en désastre or where the relevant applicant has agreed not to make such an application (for example, in non-petition language). However, an administration order can still be made where a company has entered into a winding-up.  

The appointment of administrator and moratorium

Once the order is made an administrator is appointed and assumes management of the company’s affairs, business and property. Any such administrator must be on the List of Approved Liquidators and Administrators registered with the Viscount in Jersey. A non-Jersey resident administrator may also be appointed jointly with a resident administrator (noting that both are still required to be on the list, membership of which is subject to certain requirements with an annual renewal requirement).  

A statutory moratorium also comes into effect, such that:

• no resolution may be passed, or order made, for the company's winding up or order made for the property of the company to be placed en désastre

• no action or legal proceedings may be commenced or continued against the company without the administrator’s or the Royal Court’s consent  

However, as mentioned above, the moratorium does not affect a creditor with security over the whole or any part of the company's assets from enforcing their security.  

What are the administrator’s powers and duties? 

The Amendment Law sets out a comprehensive list of powers for administrators which will be familiar to practitioners elsewhere, including running the business, appointing advisers, making distributions to certain creditors and more. 

Administrators have reporting duties, including sending notice of the administration, calling creditor meetings and preparing statements of affairs and accounts. They can also investigate acts of the company such as transactions at an undervalue and preferences.  

An administrator's remuneration, costs and expenses are set by the Royal Court and have priority over any unsecured claims.  

Conclusion

The Amendment Law establishes a clear and robust legal framework for company administration in Jersey, providing new tools for rescue and asset realisation. Importantly, secured creditor protections have been put in place to ensure that Jersey maintains its reputation as a creditor-friendly jurisdiction. 

How Ogier can help 

Our Restructuring and Insolvency lawyers advise lenders, creditors and stakeholders on how the new administration regime applies in practice, including security enforcement, creditor engagement and restructuring options. 

Where Jersey companies sit within wider financing, investment or holding structures, Ogier Global, our corporate and fiduciary division, supports their establishment and ongoing administration and governance throughout the companies’ life cycle, working closely with our legal teams. This joined-up approach helps ensure that legal, operational and creditor considerations are managed clearly and efficiently if financial stress arises.

Contact the team to find out more. 

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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