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    The mere assertion that something may be revealed by the liquidator’s investigation; and the pressure and leverage of the prospect of winding up are not sufficient to satisfy the 2nd core requirement
    2022-03-24

    Excellent Asia (BVI) Ltd v Mas Media Group Ltd[2021] HKCFI 3605

    In March 2020, the Petitioner presented a petition to wind up the Respondent company, which is incorporated in the Cayman Islands, on the ground of insolvency.

    Failing to state in the Petition how the three core requirements are satisfied, the Petitioner subsequently took out a summons seeking to introduce a re-amendment to assert matters that are capable of satisfying the three core requirements.

    Filed under:
    Hong Kong, Insolvency & Restructuring, Litigation, ONC Lawyers
    Authors:
    Ludwig Ng , Ivy Wang
    Location:
    Hong Kong
    Firm:
    ONC Lawyers
    Hong Kong Court refused to stay proceedings commenced by creditors in Hong Kong despite recognition of Mainland insolvency proceedings
    2022-03-24

    Nuoxi Capital Ltd (In Liquidation in the British Virgin Islands) v Peking UniversityFounder Group Co Ltd[2021] HKCFI 3817

    Filed under:
    Hong Kong, Insolvency & Restructuring, Litigation, ONC Lawyers
    Authors:
    Ludwig Ng , Ivy Wang
    Location:
    Hong Kong
    Firm:
    ONC Lawyers
    Bankruptcy Order annulled for the Petitioner’s failure to satisfy the “business gateway” requirement
    2022-03-24

    Re Wang Huimin[2021] HKCFI 3472

    The Bankrupt, Madam Wang, is a Chinese citizen and holds a PRC resident identity card. She has been residing in Shanghai since she was born. The Petitioner is Madam Wang’s younger brother.

    Filed under:
    Hong Kong, Insolvency & Restructuring, Litigation, ONC Lawyers, Bankruptcy
    Authors:
    Ludwig Ng , Ivy Wang
    Location:
    Hong Kong
    Firm:
    ONC Lawyers
    New Chapter 11 Filing - Footprint Power
    2022-03-24

    On March 23, 2022, Massachusetts-based Footprint Power Salem Harbor Development LP and certain affiliates, which operate a 674 MW natural gas-fired combined-cycle electric power plant in Salem, Massachusetts, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10239).

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
    Location:
    USA
    Firm:
    Cole Schotz PC
    What is a creditor’s entitlement to vote at a creditors’ meeting where the company has a cross-claim against the creditor?
    2022-03-24

    Re Hsin Chong Construction Co Ltd (No 4)[2021] 5 HKLRD 489, [2021] HKCFI 3451

    Filed under:
    Hong Kong, Insolvency & Restructuring, Litigation, ONC Lawyers
    Authors:
    Ludwig Ng , Ivy Wang
    Location:
    Hong Kong
    Firm:
    ONC Lawyers
    Trustees held to have no right to compel the Bankrupt to pay any part of his/her income earned during the bankruptcy to the estate absent an income payments order
    2022-03-24

    Re Ho Suet Hung[2021] HKCFI 3836

    A bankruptcy order was made against the Bankrupt on 16 October 2018. Upon the consent of the Official Receiver, being the provisional trustee, the Bankrupt opened a bank account at Standard Chartered Bank (“SCB Account”) to receive her monthly salary. The Trustees were subsequently appointed whereupon the OR ceased to be provisional trustee.

    Filed under:
    Hong Kong, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, ONC Lawyers
    Authors:
    Ludwig Ng , Ivy Wang
    Location:
    Hong Kong
    Firm:
    ONC Lawyers
    Unconscionability in asset-based lending - lessons from Stubbings v Jams
    2022-03-21

    In the recent case of Stubbings v Jams 2 Pty Ltd [2022] HCA 6, the High Court has allowed an appeal relating to asset-based lending (ABL) and the enforceability of security associated with these loans. The High Court held that whilst asset-based lending itself is not unconscionable, certain conduct may render loans and security unenforceable. The decision is a reminder that lenders should ensure the circumstances of potential borrowers are fully scrutinised prior to lending.

    Filed under:
    Australia, Banking, Insolvency & Restructuring, Litigation, Corrs Chambers Westgarth, Australian Securities and Investments Commission Act 2001, High Court of Australia
    Authors:
    Craig Ensor , Michelle Gordon
    Location:
    Australia
    Firm:
    Corrs Chambers Westgarth
    Hong Kong Liquidators Seek Mainland Assets of Hong Kong Listed Company
    2022-03-21

    In the recent case of Re Joint and Several Liquidators of Ozner Water International Holding Ltd 浩澤淨水國際控股有限公司 (In Liquidation) [2022] HKCU 940, the Hong Kong Court of First Instance (Hong Kong Court) granted an application by the liquidators (Liquidators) of Ozner Water International Holding Ltd. (Company) for a letter of request for recognition and assistance (Letter of Request) to be issued to the Shenzhen Intermediate People’s Court (Shenzhen Court).

    Filed under:
    Hong Kong, Company & Commercial, Insolvency & Restructuring, Litigation, Sidley Austin LLP, Court of First Instance (Hong Kong)
    Authors:
    Desmond Ang , Sophia Tong , Michael Wang
    Location:
    Hong Kong
    Firm:
    Sidley Austin LLP
    The Four Hurdles of Provisional Liquidation
    2022-03-21

    In an ex parte on short notice application, the Cayman Islands Grand Court considered the four hurdles that must be overcome for the appointment of joint provisional liquidators (JPLs).

    The application was brought by an individual investor in Seahawk China Dynamic Fund (the Applicant and the Company). The Applicant submitted that he became aware of dishonest conduct on the part of Hao Liang (Mr Liang) who held all of the management shares in the Company.

    Filed under:
    Cayman Islands, Insolvency & Restructuring, Litigation, Mourant
    Authors:
    Christopher Harlowe
    Location:
    Cayman Islands
    Firm:
    Mourant
    High Court rejects creditor's attempt to terminate Part A1 moratorium
    2022-03-22

    The standalone moratorium has been a seldom used restructuring tool since its introduction under the Corporate Insolvency and Governance Act 2020.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Stevens & Bolton LLP, Moratorium, Insolvency Act 1986 (UK), Corporate Insolvency and Governance Act 2020
    Authors:
    Matthew Padian , Slavi Stoencheva
    Location:
    United Kingdom
    Firm:
    Stevens & Bolton LLP

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