Liquidators are of crucial importance where there are risks that a company is approaching the end of its operating cycle. Liquidators protect the interests of creditors and release or transfer economic value that would otherwise be trapped and sometimes lost after a winding-up. However, in two recent cases, we have seen criticism directed at liquidators by the courts in Hong Kong. This is of particular importance where liquidators are appointed by the courts as officers of the court and must uphold high standards required by that appointment and the law.

簡介

香港法院過往一直承認公司在其註冊成立所在的司法管轄區展開的外地清盤程序。但最近在Provisional Liquidator of Global Brands Group Holding Ltd v Computershare Hong Kong Trustees Ltd [2022] HKCFI 1789一案中，夏利士法官提出一種新的方法，承認在公司的「主要利益中心」所在的司法管轄區進行的外地清盤程序。夏利士法官認為，就香港法院承認及協助外地清盤人而言，外地清盤程序在公司註冊成立地點進行這一點並不足夠，也非必要。

背景

利標品牌有限公司（「該公司」）是一間在百慕達註冊成立，並在香港聯合交易所上市的投資控股公司。由於新型肺炎疫情持續，該公司及其附屬公司的業務面臨嚴峻困難，因此該公司董事會認為展開清盤程序符合該公司的利益，並向百慕達法院申請委任臨時清盤人（「臨時清盤人」），授以有限度權力以協助該公司重組債務。然而，重組並不成功，百慕達法院於2021年11月5日對該公司發出清盤令。

The Hong Kong commercial and insolvency disputes team acted for the successful appellant in Guy Kwok-Hung Lam -v- Tor Asia Credit Master Fund LP CACV 393/2021 [2022] HKCA 1297.

The Cayman Islands' Companies (Amendment) Act, 2021 (the Amendment Act) has now come into force. The Amendment Act introduces a new corporate restructuring process and the concept of a dedicated 'restructuring officer' into the Cayman Islands Companies Act (2022 Revision). Under the Amendment Act, the filing of a petition for the appointment of a restructuring officer triggers an automatic global moratorium on claims against the company, giving it the opportunity to seek to implement a restructuring.

A 3-Judge Bench of the Supreme Court in its judgment dated 26 August 2022 has held that the provisions of the Insolvency and Bankruptcy Code, 2016 will prevail over the provisions of the Customs Act, 1962.

简介

香港法院过往一直承认公司在其注册成立所在的司法管辖区展开的外地清盘程序。但最近在Provisional Liquidator of Global Brands Group Holding Ltd v Computershare Hong Kong Trustees Ltd [2022] HKCFI 1789一案中，夏利士法官提出一种新的方法，承认在公司的「主要利益中心」所在的司法管辖区进行的外地清盘程序。夏利士法官认为，就香港法院承认及协助外地清盘人而言，外地清盘程序在公司注册成立地点进行这一点并不足够，也非必要。

背景

利标品牌有限公司（「该公司」）是一间在百慕达注册成立，并在香港联合交易所上市的投资控股公司。由于新型肺炎疫情持续，该公司及其附属公司的业务面临严峻困难，因此该公司董事会认为展开清盘程序符合该公司的利益，并向百慕达法院申请委任临时清盘人（「临时清盘人」），授以有限度权力以协助该公司重组债务。然而，重组并不成功，百慕达法院于2021年11月5日对该公司发出清盘令。

Introduction

Background

The regime under the Insolvency and Bankruptcy Code, 2016 (“IBC”), is largely creditor centric. In fact, extraordinary as it may sound, corporate insolvency resolution process (“CIRP”) under IBC is nothing short of a puppet show, with the Committee of Creditors (“CoC”) as the puppet master. The CoC, comprising of financial creditors of the corporate debtor, is paramount in terms of making the most significant decisions of the process and plays a vital role in resolving the debt.

On 27 July 2022, the National Company Law Appellate Tribunal (NCLAT) in Zoom Communications Private Limited v Par Excellence Real Estate Private Limited, Company Appeal (AT) (Insolvency) No. 619 of 2022 upheld the order of the National Company Law Tribunal, New Delhi (NCLT) dated 17 May 2022 dismissing an application to initiate Corporate Insolvency Resolution Process (CIRP) on the ground that the debt appeared suspicious and collusive in nature.

Background

In a recent judgment in the case of ABG Shipyard, the Supreme Court has decided an extremely relevant question of law concerning the liquidation process under the Insolvency & Bankruptcy Code, 2016 (“IBC”).