On 26 June 2019, the Directive on restructuring and insolvency^[1] of the European Parliament and of the Council was published in the Official Journal of the European Union.

In this article, Jose Maurellet SC and Michael Lok consider a recent judgment by Aedit Abdullah J of the Singapore High Court exploring issues arising out of the Model Law, including how and when the presumptive COMI may be displaced and whether a publicly held real estate investment trust falls within the scope of COMI.

The ‘roaring twenties’ of this century have left the business world in constant turmoil. After emerging from the pandemic, geopolitical tensions and the resulting economic uncertainty have pushed companies to rethink their organisational structures and rework their operating models and supply chains. Digitalisation and automation of the workforce is now at the forefront as businesses respond to rapidly changing customer needs. All of this requires companies to focus strategically on change management, as well as major workforce restructurings and reorganisations.

Podwyższeniu ma ulec maksymalny wymiar kar pieniężnych nakładanych na związki przedsiębiorców przez organ ochrony konkurencji i konsumentów. A w przypadku niewypłacalności związku, przewiduje się odpowiedzialność solidarną jego członków.

In Nuoxi Capital Ltd v Peking University Founder Group Co Ltd [2021] HKCFI 3817, Mr Justice Harris held that keepwell disputes should be determined in Hong Kong in accordance with the contractual exclusive jurisdiction clause, notwithstanding the Court recognising the keepwell provider’s Mainland insolvency proceedings.

In Re Samson Paper Holdings Ltd[2021] HKCFI 3288, the Honourable Mr. Justice Harris sanctioned a scheme of arrangement notwithstanding that there were proposed modifications after the relevant scheme meeting.

On 10 October, the Dubai Court of First Instance issued a potentially ground-breaking judgment in respect of directors’ liability in the context of corporate insolvency.

In particular, in the matter of the liquidation of the public company Marka PJSC (“Marka”), the Court held the company’s board of directors and managers personally and jointly liable for the company’s outstanding debts, totalling close to AED 450 million.

In Re HNA Group Co Limited[2021] HKCFI 2897, the Hong Kong Court recognised for the first time reorganisation proceedings commenced under the Mainland Enterprise Bankruptcy Law (“Mainland Reorganisation Proceedings”).

Test for risk of dissipation

In Re Cosmos Machinery Enterprises Ltd [2021] HKCFI 2088, Mr Justice Harris corrected some privatisation scheme practice and issued the following guidance:

(1) Rule 2.10 of the Code on Takeovers and Mergers (“Rule 2.10”) did not prevent offeror concert parties from voting on privatisation schemes.