Insolvency practitioners should take note of a recent NSW Supreme Court decision that adopted a broad approach to the legislation imposing liability on receivers and mortgagees in possession for rent or other amounts payable under a property contract. The same reasons would extend to voluntary administrators' liability. Partner Michael Quinlan (view CV) and Law Graduate Jack Power report. http://www.aar.com.au/pubs/insol/foinsoloct10.htm?email=true

Hong Kong has lagged behind other jurisdictions in the development of litigation funding. However, a recent Court of First Instance decision offers the first explicit and publicly available endorsement of the lawfulness of third-party litigation funding in the context of claims by insolvent companies.

Pioneer Iron and Steel, a trading company owned by the mainland's so-called "steel princess", Diana Chen Ningning, has gone into provisional liquidation in Hong Kong, owing creditors more than US$516 million. People informed of the situation said the company mainly traded iron ore and owes money to Anglo Australian mining giant BHP Billiton and Standard Chartered. Chen declined to comment as did spokesmen for BHP Billiton and Standard Chartered. Chen is a well- known and well-connected entrepreneur on the mainland.

Provisional Supervision (“PS”) has been talked about for many years and at long last it appears to be on its way, subject to course to legislative time being available. Government has issued its latest take on the issue and has indicated its intention to introduce a bill to Legco.

This Client Alert looks at some of the recent changes, issues and challenges facing those interested in the derivatives market in the PRC and Hong Kong.

On 5 August 2010, the Supreme People's Court issued its "Provisions on Several Issues Concerning the Trial of Disputes Involving Foreign-Invested Enterprises"(SPC Provisions), following the circulation of a draft version of the law in November 2009.