Hong Kong’s final appellate court clarifies the law on validity of transactions disposing of a company’s property after commencement of winding up

The Hong Kong Court of Final Appeal (the “CFA“) has clarified in a recent judgment the application of section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (“CWUMPO“) and when the court will grant a validation order.

Filed under:
Hong Kong, Company & Commercial, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
Authors:
Gareth Thomas , Alexander Aitken , Peter Ng
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP
You big old softie you: Hong Kong Court grants power to foreign soft-touch provisional liquidators to facilitate restructuring

In Joint Provisional Liquidators of Moody Technology Holdings Ltd [2020] HKCFI 416, the Hong Kong Court of First Instance (the “Hong KongCourt”) granted a recognition order to foreign provisional liquidators who were appointed on a soft-touch basis, to explore and facilitate the restructuring of a company. The order was made despite soft-touch provisional liquidation being per se impermissible in Hong Kong.

Background

Filed under:
Hong Kong, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP
Authors:
Gareth Thomas , Dominic Geiser , Alexander Aitken , Philip Lis , Peter Ng
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP