China Lumena New Materials Corp (in provisional liquidation) [2020] HKCFI 338 (decision made on 23 January 2020 and reasons given on 4 March 2020)

This is the first reported scheme of arrangement in Hong Kong seeking to compromise debt governed by PRC law. Under the Gibbs Rule, a foreign composition does not discharge a debt unless it is discharged under the law governing the debt. In this case, the Hong Kong Court considered an exception to the Gibbs Rule and more generally the principles of sanctioning a scheme.

Background

Re Joint Provisional Liquidators of Moody Technology Holdings Ltd [2020] HKCFI 416

The Hong Kong Court has explained why there is no inconsistency between: (a) its domestic insolvency law which does not permit the appointment of provisional liquidators purely for the purposes of restructuring the company; and (b) common law recognition of foreign "soft-touch" provisional liquidators.

What is a soft-touch provisional liquidator?

Covid-19 has brought about much uncertainty for businesses worldwide and it is timely for a special edition of Going Concerns to provide a "survival guide" in the following jurisdictions Singapore, the People's Republic of China ("PRC"), Hong Kong, United Kingdom and the United Arab Emirates ("UAE"). This special edition will also touch on recent legislation and stimulus packages introduced by governments of the above (where applicable) in response to the Covid-19 outbreak, which will impact both creditors and debtors.

Survival guide

2017 Proskauer Annual Review and Outlook for Hedge Funds, Private Equity Funds and

Other Private Funds

2017 Proskauer Annual Review and Outlook for Hedge Funds, Private Equity

Funds and Other Private Funds

The following annual review and outlook (Annual Review) is a summary of some of the significant changes and developments that occurred in the past year and certain recommended practices that investment advisers to hedge funds, private equity funds and other private funds (collectively, private funds) should consider when preparing for 2018.

Just in time for Chinese New Year, a Hong Kong court has taken a major step forward in the developing law on cross-border insolvency by recognising a mainland Chinese liquidation for the first time. InJoint and Several Liquidators of CEFC Shanghai International Group Ltd [2020] HKCFI 167, Mr Justice Harris granted recognition and assistance to mainland administrators in Hong Kong so they could perform their functions and protect assets held in Hong Kong from enforcement.

This article was first published in the Global Restructuring Review, 14 Jan 2020.

In our work with international companies supplying goods to the UK, we see a number of common issues arising regularly. In our previous articles, we explained what happens if a UK customer hits financial difficulties and the powers of insolvency practitioners. In this last of five articles based on the five elements of the Wu Xing, we take the theme of Earth and explain the options to get paid by an insolvent customer, completing the business as usual cycle of supply and payment and thereby restoring balance to your business.

How the recent changes will impact restructurings of listed companies

前言

根据《公司法》第186条第2款的规定，公司在分别支付清算费用、职工的工资、社会保险费用和法定补偿金，缴纳所欠税款，清偿公司债务后的剩余财产（“清算后的剩余财产”），有限责任公司按照股东的出资比例分配，股份有限公司按照股东持有的股份比例分配；但是根据PE/VC投融资实践中惯常的投资人优先清算权条款，对于该等清算后的剩余财产，股东之间通常会约定不按照持股比例分配，而是由投资人先于原股东取得其优先清偿额部分（Liquidation Preference Amount），然后如还有剩余的，各股东再按持股比例分配（Participation Right）。

那么该等投资人优先清算权条款是否违反了《公司法》第186条的规定呢？对于这个问题，由于相关的司法判例尚属罕见，所以法律实务工作者对于这个问题的回答往往都会附带一些“限定性语言”。

In recent years, with the large increase in the number of enterprise bankruptcy cases, the instances of the legal representative or directors, supervisors and/or senior executives of a bankrupt enterprise (collectively, “senior officers”) being sued by the administrator or creditors have become common. In light of such laws as the Company Law, the Enterprise Bankruptcy Law, etc., and typical cases in judicial practice, such senior officers chiefly face the following risks: