The Financial Report, News from Asia and the Pacific

Hong Kong

Filed under:
Asia-Pacific, Capital Markets, Employee Benefits & Pensions, Insolvency & Restructuring, Insurance, White Collar Crime, DLA Piper, International Financial Reporting Standards, US Securities and Exchange Commission, Hong Kong Stock Exchange
Location:
Asia-Pacific
Firm:
DLA Piper
“Outmoded” parallel schemes of arrangement and a red flag on restructuring costs in Hong Kong

The Court of First Instance has recently helpfully summarised the legal position on schemes of arrangement under both Hong Kong law and English law. Notably, it has called for further development in cross-border coordination in order to avoid the trouble of parallel insolvency proceedings and it has raised a red flag in relation to detailed disclosure of restructuring costs: Da Yu Financial Holdings Limited [2019] HKCFI 2531.

Filed under:
Hong Kong, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Hong Kong Stock Exchange
Authors:
Gareth Thomas , Alexander Aitken , Philip Lis , Priya Aswani
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP
COMI as first port of call? Harris J lays out a modified common law framework for recognising foreign insolvency proceedings in Hong Kong

Historically, the Hong Kong courts have generally recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong following the recent decision of Provisional Liquidator of Global Brands Group Holding Ltd v Computershare Hong Kong Trustees Ltd [2022] HKCFI 1789 (Global Brands).

Filed under:
Hong Kong, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Coronavirus, UNCITRAL, Hong Kong Stock Exchange
Authors:
Paul Apáthy , Gareth Thomas , Alexander Aitken , Peter Ng , Tim Chu
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP
Will you stay no longer? Hong Kong Companies Court considers general stay provisions in recognition orders

When the Hong Kong Court recognises offshore soft-touch provisional liquidation, will there be an automatic stay of proceedings in Hong Kong?

Recently, in Re FDG Electric Vehicles Limited [2020] HKCFI 2931, the Companies Court answered “no”. In doing so, the Court revisited the wording of the standard-form recognition order.

Soft-touch provisional liquidations

Filed under:
Hong Kong, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Hong Kong Stock Exchange
Authors:
Gareth Thomas , Alexander Aitken , Peter Ng
Location:
Hong Kong
Firm:
Herbert Smith Freehills LLP