Further to our previous update of 15 May 2015 we are pleased to announce that the UK government has deposited instruments of ratification to the Convention on International Interests in Mobile Equipment and the Protocol (the "Protocol") to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment (which was concluded at Cape Town, South Africa on 16 November 2001) (together, the "Cape Town Convention") with UNIDROIT on 27 July 2015. The Cape Town Convention will enter into force for the UK, and by extension the Cayman Islands, on 1 November 2015.
The Cayman Islands government has been preparing for the extension of the Cape Town Convention by passing enabling legislation entitling the Cayman Islands to international recognition as a territorial unit of a contracting state to the Cape Town Convention and to recognition of the declarations deposited by the UK government on behalf of the Cayman Islands government with the International Institute for the Unification of Private Law acting as depository pursuant to Article 62(1) of the Cape Town Convention and Article XXXVII(1) of the Protocol – UNIDROIT.
As extended to the Cayman Islands, the Cape Town Convention will meet the requirements for the Cayman Islands to have made qualifying declarations as defined in the OECD Aircraft Sector Understanding.
"This is a long awaited positive development and gives financiers and development banks extra comfort that security granted by Cayman companies over aircraft will benefit from the Cape Town Convention protections," said Mark Western, Global Head of Asset Finance at Maples and Calder.
"We have been pleased to advise leasing companies, airlines and banks from our offices around the globe on building innovative structures to help them meet their aircraft funding requirements, with MaplesFS providing corporate administration and independent directors to on and off balance sheet special purpose vehicles used in those structures. This will certainly give airlines, leasing companies and financiers extra comfort in successfully structuring transactions using Cayman entities where it is helpful."
In addition, as stated in our previous update, MaplesFS Dublin, working with all offices of Maples and Calder globally, is authorised as a Professional User Entity (PUE) on the International Registry of Mobile Assets and provides Cape Town Convention services to both Irish and non-Irish incorporated entities, even where MaplesFS Dublin is not directly involved in the transaction