Two recent cases out of the Third Circuit and the Southern District of New York highlight some of the developing formulas US courts are using when engaging with foreign debtors. In a case out of the Third Circuit, Vertivv. Wayne Burt, the court expanded on factors to be considered when deciding whether international comity requires the dismissal of US civil claims that impact foreign insolvency proceedings.

When a majority of a company’s board approves a tender offer in good faith, can it still be avoided as an actually fraudulent transfer? Yes, says the Delaware Bankruptcy Court, holding that the fraudulent intent of a corporation’s CEO who was a board member and exercised control over the board can be imputed to the corporation, even if he was the sole actor with fraudulent intent.

Background

Recently, in In re Moon Group Inc., a bankruptcy court said no, but the district court, which has agreed to review the decision on an interlocutory appeal, seems far less sure.

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（「該公司」）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。

Yes, says the Delaware Bankruptcy Court in the case of CII Parent, Inc., cementing the advice routinely given by bankruptcy counsel to borrowers in default. We always counsel borrower clients in default of the risk associated with lenders taking unilateral actions pre-filing, stripping debtors of valuable options and assets. Thus, we normally recommend to always obtain a forbearance and undertake the preparations required to file a bankruptcy petition immediately upon forbearance termination, although whether or not to file depends on variety of factors that should be considered.

The Second Circuit recently held that a non-party to an assumed executory contract is not entitled to a cure payment (although it may be so entitled if is a third-party beneficiary of the contract). The result would have seemed obvious to bankruptcy practitioners. So, what in the world made the party pursuing payment take this to the Second Circuit? Well, surprisingly, as the Second Circuit decision shows, the answer is not found in the plain text of the Bankruptcy Code. And while it was argued prior to the Supreme Court’s ruling in Bartenwerfer v. Buckley, No. 21-908, 598 U.S.

A mortgage loan repurchase facility (more casually referred to as a "repo") is a financing structure commonly utilized to finance mortgage loans. These facilities are utilized by both residential and commercial mortgage loan originators and aggregators to finance mortgage loans that they originate or acquire. The structure is favored by liquidity providers in the mortgage loan finance arena due to its preferential "safe harbor" treatment under the United States Bankruptcy Code (the "Bankruptcy Code"), as further described below.

簡介

香港法院在香港將外國註冊公司清盤的法定司法管轄權，受到法院自設的限制所規限；該等限制被稱為法院行使上述司法管轄權之前所須符合的三大核心要求。

最近在Re Guoan International Ltd[2023] HKCU 939一案中，原訟法庭（「原訟庭」）需考慮是否將一間已被其註冊地點的法院清盤的外國註冊公司清盤。

案情

國安國際有限公司（「該公司」）的債權人Road Shine Developments Limited（「呈請人」）於2022年12月2日向香港法庭提出呈請，請求發出將該公司清盤的附屬命令。該公司於開曼群島註冊成立，於2022年2月28日被開曼群島大法院清盤，而袁子俊先生及Martin Trott先生於同日獲委任為其清盤人（「共同清盤人」）。反對呈請的債權人Chong Chin先生及Yao Sze Ling女士（統稱「反對債權人 」）基於兩個主要理由反對呈請：