(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.
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：
- 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）。
- 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。
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
In brief
Part 1: Introduction to orphan SPV repackaging transactions for Hong Kong SAR and Mainland China clients
This article was written by Richard Mazzochi, Minny Siu, Angus Sip and Ryan Iskandar
It is not uncommon that foreign administrators/ liquidators see the needs to seek enforcement or exercise their power in Hong Kong. The legal position in this regard is by and large aligned with the rest of the common law world in that Hong Kong Courts would recognize and assist foreign liquidators upon conditions being satisfied. The liquidator will then be able to exercise powers as if it were a local liquidator subject to certain limits. Importantly, this includes power to initiate actions.
In a pair of recent contrasting judgments, Re Agritrade Resources Ltd [2020] HKCFI 1967 and Re Rare Earth Magnesium Technology Group Holdings Ltd [2020] HKCFI 2260, the Hong Kong Court has once again confirmed its pragmatic approach towards applications by foreign liquidators and provisional liquidators for recognition and assistance in Hong Kong. The judgments emphasize the importance of adhering to the standard forms of order adopted by the Hong Kong courts in respect of such applications, and the need for any departure from the standard form to be fully justified.
In the recent case of Re Shum Tung Lam formerly known as Shum Wan Man [2020] HKCFI 1720, the Court of First Instance was asked to clarify the requirements under section 30A(6) of the Bankruptcy Ordinance (Cap. 6) (BO) which governs objections made by creditors or trustees to the automatic discharge of a bankrupt from bankruptcy.
The Situation in Hong Kong
COVID-19 has created unforeseen challenges to businesses all over the world, resulting in many companies being unable to survive the pandemic. Hong Kong has been no exception. In Hong Kong, according to data published by the Hong Kong Government’s Official Receiver’s Office, in the first seven months of the year, 5219 compulsory bankruptcy petitions and 247 compulsory winding-up petitions were presented, representing 13.7% and 5.1% year-on-year increase respectively. The effect of COVID-19 may yet be fully reflected by these figures.