Introduction

In a landmark decision issued in July, Re Leading Holdings Group Limited [2023] HKCFI 1770, the Hong Kong Courts addressed, for the first time, the right of an investor of a global note to present a winding-up petition as a contingent creditor.

The Case

The relevant company was incorporated in the Cayman Islands and was listed on the Hong Kong Stock Exchange. It issued 12% Senior Notes which were due in 2022 and the petitioner was the beneficial owner of a sub-interest in those notes.

• Introduction
• Background

My colleague Alex Chan and I had the privilege of participating in an interactive webinar hosted by the The Hon Edmund Wong, a member of the Legislative Council and the representative of the accountancy functional constituency. The webinar provided a valuable platform for professionals in the industry to delve into the significance of corporate restructuring and insolvency within the realm of accounting.

The Government of Hong Kong continues its push towards favouring digitisation over using hardcopy documents. The new changes to local bankruptcy laws allows: (1) electronic service of statutory demands; (2) using electronic bundles and skeletons for winding-up and bankruptcy applications; and (3) allowing electronic submission of documents to the Official Receiver.

Electronic service of statutory demands: A game changer for creditors and debtors

2023年5月，香港高等法院夏利士法官第一次在诺熙资本有限公司诉北大方正集团有限公司 案 [2023] HKCFI 1350（下称“北大方正案”） 中讨论了维好协议的可执行性，此后，在2023年6月15日，夏利士法官就花旗集团诉清华紫光集团有限公司 [2023] HKCFI 1572一案（下称“清华紫光案”）作出了判决，该案关于清华紫光集团有限公司（下称“清华紫光”）的间接子公司发行的4.5亿美元债券，是夏利士法官就

Re Gatecoin Limited (Gatecoin) is a landmark decision concerning the winding-up of a cryptocurrency exchange.

Background

Liquidators secured over 50 types of cryptocurrencies with an aggregate value of over HK$140m. To aid the liquidator’s allocation of the seized cryptocurrencies, the Court of First Instance decided two key issues.

Decision

The court held that:

Against the backdrop of Hong Kong's emergence from the pandemic and the government's efforts to entice tourists and investors back, there arises a question as to whether the government might consider reviving the corporate rescue bill. Implementing a framework for debt restructuring and negotiations with creditors would help prevent liquidations, which often result in additional job losses and contribute to further economic decline.

Under the Euroclear or Clearstream system, companies which issue so-called “global notes” do not have direct contractual relationship(s) with the ultimate beneficial investors in those notes. Rather, the company’s books will show only one registered global note, and only one registered holder of the global note holding the note on behalf of the investors.

The Mandatory Provident Fund (MPF) offsetting mechanism will be cancelled on 1 May 2025

By then, Hong Kong employers can no longer offset severance and long service payments owed to employees against MPF benefits derived from employers' contributions. The Hong Kong government decided in July 2023 not to implement the "Specialized Savings Account Scheme" proposed in 2018 which would require employers to create dedicated savings accounts and make 1% contributions to prepare for the abolishment of such MPF offsetting arrangement. 

强制性公积金（强积金）对冲安排将于 2025 年 5 月 1 日取消

届时，香港雇主将不能再以雇主供款所得的强积金利益抵销需向雇员支付的遣散费 和长期服务金。香港政府于 2023 年 7 月决定不实施 2018 年提出的“专项储蓄户 口计划”，该计划要求雇主设立专门的储蓄户口并缴纳 1%的供款，为取消该强积 金对冲安排做好准备。

行政成本过高

经估算，于专项储蓄户口计划运行初期，每年行政成本约 1.5 亿港元，30 年后将增至 6 亿港 元。成本高昂的原因是繁重的行政工作，包括：

(1) 规管及确保现时 30 多万名需为强积金强制供款的雇主成功开立储蓄户口；

(2) 每月收取供款；

(3) 核实及审批提款申请；及

(4) 处理未能预见的情况。

此外，预计该计划的程序将极其复杂，因 此无法避免外判服务机构处理该计划日常 运作的成本。

最后，雇主还需承担遵守该计划的相关行 政职责。 

破产欠薪保障基金