Hong Kong Court Addresses Interplay Between Arbitration and Insolvency
Hong Kong, India, Singapore, Arbitration & ADR, Insolvency & Restructuring, Litigation, Morrison & Foerster LLP, Debtor, Singapore International Arbitration Centre
In a recent decision by the influential Third Circuit Court of Appeals, In re KB Toys Inc., 2013 U.S. App. LEXIS 23083 at *17 (3d Cir. Nov. 15, 2013), the Court decided that “the cloud on the claim” stemming from a preferential payment made to the original claimant continues with the claim, which then could be disallowed.