1 November 2020 ONC Corporate Disputes and Insolvency Quarterly Dear Clients and Friends, This special newsletter aims to regularly update practitioners on important and noteworthy cases in the areas of corporate disputes and insolvency in Hong Kong, the UK and other common law jurisdictions. We would also seek to give alert on important legislative and regulatory initiatives from Hong Kong.

Heidi Chui, Stevenson, Wong & Co

This is an extract from the 2021 edition of GRR's the Asia-Pacific Restructuring Review. The whole publication is available here.

In summary

In a soft touch provisional liquidation in Hong Kong, a provisional liquidator is appointed to pursue a corporate restructuring. When permitted, a soft touch provisional liquidation cloaks a debtor company with a statutory moratorium on creditor enforcement action, thus shielding the debtor company from proceedings by creditors against it while it explores restructuring options.

In Joint And Several Provisional Liquidators Of Hsin Chong Construction Co Ltd (Provisional Liquidators Appointed) v.

Statutory demand is a common and important tool in the winding up process. But recently, the Hong Kong Court of First Instance has reminded us that it is by no means a must.

In the latest edition of Going concerns, Stephenson Harwood's Asia restructuring and insolvency team touch on key changes in Singapore brought about by the recent Singapore Insolvency, Restructuring and Dissolution Act 2018 (and where applicable, the impact on the shipping industry), and the positions in Singapore and Hong Kong on winding up petitions vs arbitration clauses.

Content

Get to know the Insolvency, Restructuring and Dissolution Act 2018 ("IRDA") Winding up petitions vs arbitration clauses (SG) The prima facie standard of review prevails

Introduction

(In Provisional Liquidation in Bermuda)

We recently acted for the joint provisional liquidators of Rare Earth Magnesium Technology Group (“the Company”) appointed by the Supreme Court of Bermuda in a conventional application for the recognition of the Bermuda soft-touch provisional liquidation of the Company

The Company was incorporated in Bermuda and is listed on the Hong Kong Stock Exchange with operating subsidiaries in Mainland China.

第一部分：向香港特别行政区和中国内地客户介绍孤儿SPV打包重组交易

本所最近为百慕大最高法院委任的稀镁科技集团（简称“公司”）联合临时清盘人，就公司软性临时清盘常规申请提供法律服务。

在百慕达注册成立，于中国香港联交所上市，并在中国大陆设有营运附属公司。

根据惯例，香港商事法庭会在符合某些标准的情况下认可外国破产管理人员。在香港，藉由请求函申请支持认可与协助已很普遍，更多会以书面提交的方式处理，并以符合香港法院认可和协助命令标准格式的形式起草命令。

在本案申请中，有些方面与标准命令略有不同（如请求书中有关段落所示），并现特别指出如下：

1. 临时清盘人的某些权力仅在公司同意下方可行使（香港认可令第 2(k)、2(m) 及 2(n) 段）。
2. 临时清盘人被授予在某些交易中接收预备材料和征求其意见的权力（香港认可令第 2(q) 段）—— 这是一项新的权力，并未见于标准命令。

虽然香港商事法庭已采用标准命令，而香港的临时清盘人所寻求的权力应与之一致，但可能会存在要求采用略有不同的条款，以便按个案情况更好适用，促进重组的情况。