by DLA Piper - Jonathan Leitch, Partner With APCOA Parking, the English High Court sets out the latest line of authority in the increasing use of schemes of arrangement by foreign companies. Read more

by DLA Piper - Jasna Zwitter-Tehovnik, Partner and Joze Vranicar, Associate During the 1990s and up to the beginning of the recent financial crisis, the economies of Central and Eastern European countries experienced rapid growth. The privatisation of state-owned industries and the general opening-up of the market attracted foreign investment. Austrian banks invested heavily in the area and as a result, now hold a significant number of non-performing loans, secured on assets located within the CEE.

by DLA Piper - Michelle Ni Ghaboid, Senior Associate In the Q1 2014 edition of Global Insight, we discussed the progress already made in respect of the Proposed Amendments to the EC Insolvency Regulation as of April 2014. The European Parliament and the Council of the European Union have now considered the Commission’s proposed amendments. Read more

by DLA Piper - Jonathan Leitch, Partner A recent decision of the High Court in Hong Kong confirms that foreign liquidators from other common law jurisdictions with similar insolvency laws may obtain recognition and certain types of assistance without the need to commence separate winding up proceedings in Hong Kong. Read more

by DLA Piper - Jonathan Leitch, Partner, Carolyn Dong, Partner and Peter Li, Lawyer Recent regulatory changes by China’s foreign exchange authority have made it significantly easier for foreign lenders to take security over domestic assets and to obtain guarantees from domestic entities in China. Read more

by DLA Piper - Amelia Kelly, Partner and James Hewer, Associate The recent restructuring of Mirabela Nickel Limited is the first time under Australian law that voluntary administrators have completed a debt for equity restructuring of a listed company, using legislative provisions which allow them to sell existing shares in a company without the consent of the shareholders. The outcome should be of significant interest to all stakeholders and investors in the Asia Pacific market. Read more

The settlement agreement recently entered into between Staff of the OSC and David Horsley, former CFO of Sino-Forest Corporation, provides meaningful guidance on the responsibilities of senior executives, particularly those serving for issuers with overseas business operations. The settlement agreement outlines the weaknesses in Sino-Forest’s disclosures and controls, including the failure to disclose the relationships it had with certain suppliers and customers, the inability to confirm cash flows for most of its purchase and sale transactions, non-disclosure of the company’s high dependence

A financial crisis in China has become inevitable. If it happens soon, its effects can be contained. But, if policy makers use further doses of stimulus to postpone the day of reckoning, a severe collapse will become unavoidable within a few years, the Financial Times reported in a commentary. The country is in the middle of by far the largest monetary expansion in history.

A default of the “Credit Equals Gold #1” trust product has been avoided. What happens in the coming months will either push China closer towards a financial crisis or help it gradually step back from the edge, Forbes reported. The lack of details that emerged from the trust bailout will undoubtedly draw criticism from foreign investors and analysts alike. Industrial and Commercial Bank of China Ltd. told investors that they could sell the rights in the RMB 3 billion product issued by China Credit Trust Co. to an unidentified buyer at a price equal to the value of the principal.

On 7 January 2014, the Hong Kong Monetary Authority (“HKMA”), Securities and Futures Commission (“SFC”) and Insurance Authority (“IA”) launched a 3-month consultation on establishing an effective resolution regime for financial institutions (“FIs”), including financial market infrastructures (“FMIs”). The proposed regime seeks to bring Hong Kong in line with the standards set in the “Key Attributes of Effective Resolution Regimes for Financial Institutions” (“Key Attributes”) by the Financial Stability Board (“FSB”).