Hot on the heels of a trio of decisions concerning offshore provisional liquidation, which opened a new and commendable era for Hong Kong’s cross-border insolvency regime (see https://dvc.hk/en/news/cases-detail/heralding-a-new-and-healthy-era-of-cross-border-insolvency-recognition-in-hong-kong-re-fdg-electric-vehicles-ltd-re-

In Hong Kong, the Official Receiver, a provisional liquidator, liquidator or any creditor may apply for a regulating order any time after the presentation of a winding-up petition. Because the court has the power to dispense with various winding-up procedures on making a regulating order (for example, the calling of the first meeting of creditors and contributories), this has sometimes been viewed as a way to facilitate a more streamlined liquidation process.

The recent decision by the Hong Kong Courts in Re Ando Credit Ltd [2020] HKCFI 2775 represents a step in the right direction in judicial cooperation over cross-border insolvency between Hong Kong and the Mainland.

A crucial aspect in cross-border insolvency proceedings is the mutual recognition of the winding-up order and execution of the same to allow liquidators to reach assets in other jurisdictions in satisfaction of the Company’s debts.

Introduction

In the recent case of Re Victor River Ltd [2021] HKCFI 886, which concerns the winding-up of a foreign company, the Court of First Instance applied the long-developed three core requirements which must be satisfied before exercising discretionary jurisdiction of the Court. In particular, the Court discussed how the holding of shares in a delisted company may impact on the Court’s consideration of the three core requirements. 

Background

Introduction

The recent decision by the Hong Kong* court in Re Ando Credit Ltd [2020] HKCFI 2775 marks its first appointment of provisional liquidators[1] over a Hong Kong company with the express purpose of allowing the liquidators to seek recognition in China Mainland.

引言

香港法院最近在Re Ando Credit Ltd [2020] HKCFI 2775一案中，首次批准一家香港公司任命临时清盘人[1]，并明确旨在允许该临时清盘人向中国内地法院寻求内地法律的承认和执行。

简介

中国于 1986 年颁布《企业破产法》。《企业破产法》属全国性法律，但只适用于企业清盘， 并不涵盖自然人破产。中国首部个人破产法规《深圳经济特区个人破产条例》（「该条例」） 于 2020 年 8 月 31 日颁布，并已于 2021 年 3 月 1 日生效。当局在草拟该条例时，参考了多个 市场经济发展较为成熟的司法管辖区的法律，例如英国、美国、德国、日本、香港及台湾。该 条例旨在建立完整的现代化破产制度，让诚实而不幸的债务人能够从债务危机中解脱出来。

申请个人破产的准则

根据该条例第二条，该条例适用于符合下列准则的自然人：

1. 在深圳经济特区居住；
2. 连续三年缴纳社会保险费；及
3. 资产不足以清偿全部债务或因生产经营、生活消费导致丧失清偿债务能力。

上述债务人应当清偿债务或与债权人达成和解协议。如债务人符合以上准则但有未来可预期收 入，则可进行重整。债务人若已按照该条例展开个人破产程序，其配偶亦可提交个人破产申 请，无需符合关于居住地及社会保险费的准则。

簡介

中國於 1986 年頒布《企業破產法》。《企業破產法》屬全國性法律，但只適用於企業清盤， 並不涵蓋自然人破產。中國首部個人破產法規《深圳經濟特區個人破產條例》（「該條例」） 於 2020 年 8 月 31 日頒布，並已於 2021 年 3 月 1 日生效。當局在草擬該條例時，參考了多個 市場經濟發展較為成熟的司法管轄區的法律，例如英國、美國、德國、日本、香港及台灣。該 條例旨在建立完整的現代化破產制度，讓誠實而不幸的債務人能夠從債務危機中解脫出來。

申請個人破產的準則 

根據該條例第二條，該條例適用於符合下列準則的自然人：

1. 在深圳經濟特區居住；
2. 連續三年繳納社會保險費；及
3.  資產不足以清償全部債務或因生產經營、生活消費導致喪失清償債務能力。 

上述債務人應當清償債務或與債權人達成和解協議。如債務人符合以上準則但有未來可預期收 入，則可進行重整。債務人若已按照該條例展開個人破產程序，其配偶亦可提交個人破產申 請，無需符合關於居住地及社會保險費的準則。 

After several unsuccessful legislative endeavors in 2000-2001, 2008-2009 and 2014, the Hong Kong government plans to relaunch the much-anticipated Companies (Corporate Rescue) Bill (the “ Bill “) in 2021.

The recent Court of First Instance decision in Li Yiqing v Lamtex Holdings Limited [2021] HKCFI 622 (11 March 2021) is a landmark decision in cross-border insolvency law in Hong Kong, in which the Court held that when it is considering the recognition of foreign insolvency proceedings, regard should not simply be had to the place of incorporation of the relevant company, but that in a departure from previous practice, the location of the company’s centre of main interest (COMI) is also a factor.