2026 will see an increase in Hong Kong disputes over fraud claims, cryptocurrency and insolvency, greater judicial collaboration with mainland China, and further digital transformation of local court processes, according to the firm's Hong Kong litigation team.
"Hong Kong commercial litigation continues to deliver landmark decisions with global impact," said the firm's Head of China and local litigator Jojo Fan.
This is the latest in our series of discussions about how clients have used HSF Kramer's Decision Analysis models as part of their strategy for disputes management.
This week, financial disputes specialist Donny Surtani describes its use in a sell-or-hold decision relating to a distressed debt holding:
The opening of safeguard or reorganisation proceedings does not automatically terminate a current agreement notwithstanding any contractual clause providing for termination.
Termination by a lessor
The liquidator of UKCloud Ltd (the Company) applied to the court for directions as to whether a debenture granted by the Company created a fixed or floating charge over certain internet protocol (IP) addresses. The lender argued that it had a fixed charge.
Fixed or floating?
Background
The administrators of Toogood International Transport and Agricultural Services Ltd (in administration) issued an application seeking an extension of the administration. Their application also asked the court whether consent to a previous administration extension should have been obtained from a secured creditor which had been paid in full before the extension process.
Once a creditor, always a creditor?
The German Federal Court of Justice (Bundesgerichtshof) has clarified the conditions under which incongruent collateral, granted when an insolvency is imminent, can be contested. The burden of proof is placed on the defendant creditor to demonstrate that the action was part of a serious restructuring attempt.
Background
In a recent judgment, the Polish Supreme Court resolved an important question concerning the rights of a creditor to bring legal proceedings after the initiation of bankruptcy proceedings by a debtor.
Legal issue
The Supreme Court considered whether the declaration of a debtor's bankruptcy results in the loss of a creditor's standing to bring a lawsuit to declare a debtor’s attempt to dissipate its assets ineffective (actio pauliana).
What is actio pauliana?
The Austrian Supreme Court recently considered whether the knowledge of a debtor may be attributed to a third party in an avoidance action.
Background
In a recent decision, the German Federal Court of Justice (BGH) further outlined the requirements for the avoidance of a transaction under insolvency law on the grounds of wilful disadvantage to creditors pursuant to section 133 of the German Insolvency Code (InsO).
Background
Background
Crabb was the sole director of Courtside Recycling Ltd (Courtside). From 2014 to 2018, Crabb instructed Courtside's accountants to file VAT returns but only provided bank statements for one of the Company's three bank accounts. As a result, the VAT assessments significantly understated Courtside's true VAT liabilities for this period.
Following its own investigation and using transaction information gathered from Courtside's other bank accounts, HMRC issued amended VAT assessments. Courtside was unable to pay its VAT liabilities.