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The Abu Dhabi Global Market (the “ADGM”) courts have recently handed down their decision in NMC Healthcare Limited & Others v Shetty & Others ([2024] ADGMCFI 0007). The decision deals with several important principles in relation to fraudulent/wrongful trading liabilities under ADGM law. Given the ADGM re-domiciliation (or continuation) regime, enabling companies incorporated elsewhere to be redomiciled to ADGM with relative ease, the decision is likely to be of interest beyond the borders of the ADGM.

In the recent decision Sian Participation v Halimeda (Sian), the Judicial Committee of the Privy Council (the Privy Council) held on a BVI appeal that a winding-up petition should not be stayed or dismissed merely because the underlying debt is subject to a generally-worded arbitration agreement.

In the most significant decision of the decade on a matter of U.S. bankruptcy law, the U.S. Supreme Court rendered its highly anticipated decision in Harrington v. Purdue Pharma L.P., 603 U.S. ____ (2024) on June 27, 2024, striking down the non-consensual third party releases that were the cornerstone of Purdue Pharma's Chapter 11 Plan of Reorganization by a vote of 5-4. In doing so, the Court said:

Following a series of important decisions in England and across Europe, it is now beyond doubt that court-based restructuring processes should be approached from the outset as pieces of litigation.

We have seen increasingly sophisticated challenges to restructurings, which the courts are willing to accommodate. In appropriate cases, the courts have also refused to sanction restructurings.

The English Court of Appeal has today overturned the restructuring plan sanction order made by the High Court in April 2023.

The keenly awaited judgment raises some difficult issues for Adler in the context of its restructuring, but more broadly clarifies a number of points in relation to restructuring plans.

How the court uses its discretion to sanction a plan

High rates of insolvencies look set to continue as the latest quarterly insolvency statistics have been published for England and Wales. Whilst the statistics show a 2% dip from the second quarter of 2023, the number of insolvencies remains 10% higher than in 2022 and shows a return to pre-pandemic levels for compulsory liquidations and administrations. It is particularly striking that the first two quarters of 2023 represent the highest quarterly insolvencies since Q2 2009.

简介

最近在Re Guy Kwok-Hung Lam [2023] HKCFA 9一案中,香港终审法院澄清,如果受争议的呈请债务所涉及的协议载有专属司法管辖权条款(「专属条款」),法院应如何处理清盘及破产呈请。

案情

上诉人于2017年与CP Global Inc(「该公司」)及答辩人订立了一份信贷及担保协议(「信贷协议」)。据此,上诉人向该公司提供定期贷款,答辩人就该公司结欠上诉人的所有款项提供个人担保。信贷协议载有专属条款,就该协议所产生或与之有关的所有法律程序赋予纽约法院专属司法管辖权。

于2020年,上诉人认为发生了信贷协议所指的违约事件,故要求答辩人支付信贷协议项下的未偿还本金及利息。答辩人未有按上诉人的要求还款,因此上诉人在香港针对答辩人展开破产法律程序。另一方面,答辩人在纽约提起诉讼,请求法院求宣告并无发生信贷协议下的违约事件。

答辩人反对在香港提出破产呈请的主要理由之一,是专属条款规定上诉人须首先在纽约法院就双方争议进行诉讼,然后才可在香港展开破产程序。

Introduction

In the latest judgment handed down by the Hong Kong Court of Final Appeal in Re Guy Kwok-Hung Lam [2023] HKCFA 9, the Court of Final Appeal clarified the approach to winding up and bankruptcy petitions where the agreement from which the disputed petition debt arose contains an exclusive jurisdiction clause (“EJC”).

Facts

簡介

最近在Re Guy Kwok-Hung Lam [2023] HKCFA 9一案中,香港終審法院澄清,如果受爭議的呈請債務所涉及的協議載有專屬司法管轄權條款(「專屬條款」),法院應如何處理清盤及破產呈請。

案情

上訴人於2017年與CP Global Inc(「公司」)及答辯人訂立了一份信貸及擔保協議(「信貸協議」)。據此,上訴人向該公司提供定期貸款,答辯人就該公司結欠上訴人的所有款項提供個人擔保。信貸協議載有專屬條款,就該協議所產生或與之有關的所有法律程序賦予紐約法院專屬司法管轄權。

於2020年,上訴人認為發生了信貸協議所指的違約事件,故要求答辯人支付信貸協議項下的未償還本金及利息。答辯人未有按上訴人的要求還款,因此上訴人在香港針對答辯人展開破產法律程序。另一方面,答辯人在紐約提起訴訟,請求法院求宣告並無發生信貸協議下的違約事件。

答辯人反對在香港提出破產呈請的主要理由之一,是專屬條款規定上訴人須首先在紐約法院就雙方爭議進行訴訟,然後才可在香港展開破產程序。

On 16 May 2023, Mr Justice Adam Johnson in the High Court refused to sanction the restructuring plan proposed by The Great Annual Savings Company Limited (GAS) following objections from HMRC.