The already messy bankruptcy of Vesttoo has been further complicated by the cyberattack in Bermuda, which could result in a delay in the liquidation of the company.

A hearing on the winding-up of Vesttoo has been scheduled for today in the Supreme Court. While the hearing is still on the docket, attorneys in Bermuda wonder whether decisions in general will be delivered in a timely manner.

Government IT systems have been hacked — and possibly controlled by a ransomware group — with many services offline or partly offline since last Thursday.

The computer system used by Bermuda’s court system is down, which prevents the recording of the proceedings and might limit a judge’s access to records of the trial and make it difficult for them to write the decision.

The lawyers note that Bermudian courts are working diligently to keep cases moving despite the lack of an IT system, but that problems could nevertheless build up over time. They made no comments specifically on the Vesttoo situation and instead addressed the overall state of the court system.

Bermuda’s IT debacle comes at a crucial time for Vesttoo.

The Israeli insurtech is being wound up in Bermuda and is in Chapter 11 in Delaware, and a jurisdictional turf war is threatened as questions are raised about the ownership of and control over assets, claimed both by Vesttoo’s Delaware entities and liquidators in Bermuda.

Joint provisional liquidators in Bermuda are seeking to pursue discovery on and recovery from White Rock cell assets in the bankruptcy.

Vesttoo claims ownership of the cells and argues that the cells are protected under Delaware Chapter 11 proceedings. The Bermuda liquidators counter that a stay order under the bankruptcy does not apply to their work related to the White Rock cells.

They contend that Vesttoo has no control over the assets of the cells, that the authority belongs to White Rock and to the liquidators to the extent that they are working on behalf of the board of White Rock. Vesttoo, they say, only has a right to the surplus, if any, from the cells.

Last week, Judge Mary F. Walrath, of the United States Bankruptcy Court in the District of Delaware, ordered the Bermuda joint provisional liquidators to back off, at least temporarily.

She said that if the two sides cannot come to an understanding about the assets in question, a hearing would be held on October 2. The judge has since said that the liquidators can attend the Bermuda court hearing as long as they don’t violate the stay.

With the Bermuda hearing today and the Delaware hearing on Monday, the two jurisdictions will be trying to divvy up responsibility for oversight of the Vesttoo case, even as one jurisdiction struggles with an IT meltdown.

Bermuda was the hub of the Vesttoo operation, which started to unravel when it was discovered that fraudulent collateral was used to back transactions on the platform.