Domestic procedures
Cross-border procedures
Creditors
Avoidance transactions
Contributions to the liquidation estate and liability of officers
This article answers key questions regarding restructuring and insolvency in Guernsey.
This article answers key questions regarding restructuring and insolvency in Guernsey.
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Through a trio of decisions, Mr Justice Harris has opened a new and commendable era for Hong Kong’s cross-border insolvency regime. The position under this new era is in brief thus:
First, the Hong Kong court is likely to use the debtor’s centre of main interests (“COMI”) as a yardstick to determine eligibility for recognition and assistance.
In Li Yiqing v Lamtex Holdings Ltd [2021] HKCFI 622, the Companies Court considered whether to put a Bermuda-incorporated company into immediate liquidation in Hong Kong or to adjourn the local winding-up petition to allow restructuring to proceed with the involvement of joint provisional liquidators appointed in Bermuda.
Q4 2020 and Q1 2021 saw some significant developments in offshore restructuring, insolvency and corporate recovery, with the passage of new legislation and the handing down of judgments providing welcome clarification on laws relevant to practitioners in this area.
What are the principal insolvency procedures for companies in your jurisdiction?
Domestic Procedures
Public policy, “No-Action” and arbitration clauses, and the substitution of petitioners
Background
Bonds that are traded via clearing houses, such as Euroclear and Clearstream, often contain terms providing that there will be a trustee for the issue, who may be appointed by the participants in the relevant clearing system or by the beneficial owners.
Correcting a widespread mistake, Mr Justice Harris in Re China Ocean Industry Group Ltd [2021] HKCFI 247 held that the Court has no jurisdiction to make a validation order after a winding-up petition in respect of the issue of new shares and convertible bonds (“CBs”).
The correct position is that a company subject to a winding-up petition may issue new shares and CBs without a validation order.
Background to the widespread mistake and the present case
