Does a bondholder have standing to petition for winding up? In the landmark decision of Cithara Global Multi-Strategy SPC v Haimen Zhongnan Investment Development (International) Co.
The Hong Kong Courts exercise supervisory jurisdiction over liquidations in Hong Kong. Recently, the High Court reiterated its role to assist liquidators to effectively discharge their duties, in the best interest of the general body of creditors.
DLA Piper Hong Kong recently represented Dr. Hui Chi Ming as a judgment creditor (Judgment Creditor) and petitioner to a bankruptcy proceeding against Mr. Koon Wing Yee (Debtor). In the judgment of Re Koon Wing Yee [2023] HKCFI 2301, the Court of First Instance made a bankruptcy order against the Debtor because he had failed to show a bona fide dispute on substantial grounds regarding the debt.
A recent judgment of the United Kingdom Supreme Court in Brake & Anor v The Chedington Court Estate Ltd [2023] UKSC 29 (10 August 2023) is likely to be a welcome decision for liquidators and trustees in bankruptcy in setting clear boundaries as to who has standing to challenge their decision-making in corporate or personal insolvency contexts.
On August 17, 2023, China Evergrande Group, one of China’s largest real estate developers, and its affiliates filed chapter 15 petitions in the US Bankruptcy Court for the Southern District of New York in Manhattan seeking recognition of foreign restructuring proceedings in the High Court of Hong Kong and in the High Court of the Eastern Caribbean Supreme Court in the British Virgin Islands.
Deciding the parameters of directors' personal liability for actions, or omissions, when a company continues to trade while it is or near insolvent requires a balance to be struck between allowing directors latitude to try to rescue the company and protecting the company's creditors.
From 1 September 2023, judicial reorganisation proceedings by way of an amicable agreement as well as those with a view to a collective plan will both have a private variant. This will help avoid negative publicity and allowing the debtor to prepare its restructuring in all quietness.
As a reminder, a company confronted with financial difficulties threatening its continuity may file for judicial reorganisation proceedings to get protection against enforcement actions and bankruptcy filings by its creditors.
From 1 September 2023, the restructuring expert will make their first appearance in Belgian restructuring law. This new court-appointed practitioner can be assigned a variety of tasks, ranging from assisting the debtor in negotiations with creditors to supervising the restructuring process and compliance with creditor information obligations.
From 1 September 2023, Belgian insolvency law will provide a new discrete preparatory procedure before bankruptcy. It’s aimed at facilitating a value-maximising transfer of assets or activities as a going concern in the interest of creditors and employees.
From 1 September 2023, the Belgian reorganisation procedure by way of a collective plan will be radically changed for large companies. It introduces the obligation to group creditors (and shareholders) into “classes” for the purpose of voting on a restructuring plan.
The Belgian Act of 7 June 2023 transposing EU Restructuring Directive (2019/1023) introduces new rules specifically aimed at large companies filing for a judicial reorganisation through a collective plan (similar to the US Chapter 11 or UK Restructuring Plan procedure).