Clear Benefits for Multinational Company Working with Jersey Advisors

Sanne worked with a global insurance group company. Their client required the restructuring of multi-jurisdictional entities in 2020, when litigation proceedings commenced from investors in connection with the sale of its stake in a company which was sold as part of an Initial Public Offering.

26 August 2022

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The Client

A global insurance group company.

The Challenge

Sanne’s client required the restructuring of multi-jurisdictional entities in 2020, when litigation proceedings commenced from investors in connection with the sale of its stake in a company which was sold as part of an Initial Public Offering. The value of the asset had been deemed to be overvalued by the investors and the group company provided insurance for one Dutch and two Luxembourg companies party to the litigation.

Solution

After obtaining external tax, legal and structuring advice, Sanne created an orphaned ownership structure of the entities party to litigation proceedings and established a Jersey Charitable Trust as the ultimate beneficial owner of the Dutch and Luxembourg companies. Any residual funds are to be paid to charity, and to enable the wind-up of the structure and for final distributions to be made by the trust, the insurance group company provides insurance cover against any adverse determination in the litigation over the five-year period.

Results

As a leader in global corporate and trustee services for multinational businesses, Sanne supported the restructuring process through the provision of full corporate and directorship services across the multi-jurisdictional entities as well as acting as trustee for the newly established Jersey Charitable Trust.