From a civil litigation and insolvency perspective, we look at the key impacts of the Hong Kong Courts’ recent General Adjournment of Proceedings (GAP) from 7 March 2022 to 11 April 2022 and related governmental closures.
Key Takeaways
1. The recent implementation of GAP has resulted in a de facto stay of new actions and proceedings, and adjournment of existing actions, including bankruptcy and winding-up petitions.
Au début de la pandémie, on craignait que le nombre de dossiers de faillite grimpe de 35 % en 2020 et en 2021. Or, bien que certains secteurs aient été durement touchés, cette crainte ne s’est jamais matérialisée au Canada et aux États-Unis – possiblement en raison des mesures de soutien considérables qui ont été mises en œuvre par les gouvernements. Or, l’avenir ne semble pas tracé pour autant, puisque selon les prévisions d’Allianz Research, les procédures de faillite augmenteront de 15 % en 2022, alors que la croissance économique mondiale affichera un recul d’entre 5,5 % et 6 %.
At the start of the pandemic, insolvency filings were expected to increase by 35% in 2020 and 2021. While some industries were hit hard, this prediction never materialized in Canada and the U.S., possibly because of significant financial government support. The future is less clear, with Allianz Research forecasting, for 2022, a 15% increase in insolvency filings and a 5.5–6% decrease in global economic growth.
Below are five key trends that may impact insolvencies this year, based on data published by the World Bank:
In brief
The courts were busy in the second half of 2021 with developments in the space where insolvency law and environmental law overlap.
In Victoria, the Court of Appeal has affirmed the potential for a liquidator to be personally liable, and for there to be a prospective ground to block the disclaimer of contaminated land, where the liquidator has the benefit of a third-party indemnity for environmental exposures.1
In brief
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act ("Act") received royal assent on 15 December 2021.
The Act extends the scope of powers available to the Insolvency Service to address the issue of directors dissolving companies to avoid paying their liabilities.
In brief
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act ("Act") received royal assent on 15 December 2021.
The Act extends the scope of powers available to the Insolvency Service to address the issue of directors dissolving companies to avoid paying their liabilities.
The High Court, in its recent judgment In the matter of ipagoo LLP (in administration) [2021] EWHC 2163 (Ch) (Ipagoo), has determined that no statutory trust exists over safeguarded funds held under the Electronic Money Regulations 2011 (EMRs). This can be contrasted with the decision In Re Supercapital [2020] EWHC 1685 (Ch) (Supercapital) which found that the Payment Services Regulations 2017 (PSRs) create a statutory trust over safeguarded funds.
A comparison of the key differences between Chapter 11 of the U.S. Bankruptcy Code and the Companies’ Creditors Arrangement Act.
Blakes and Blakes Business Class communications are intended for informational purposes only and do not constitute legal advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.
In brief
"All happy families are alike, each unhappy family is unhappy in its own way. With apologies to Tolstoy, the Akhmedov family is one of the unhappiest ever to have appeared in my courtroom." – Mrs. Justice Knowles