Not “worthless window dressing”: Hong Kong Court declares keepwell deeds are enforceable contractual obligations

In two remarkably similar cases, Re Peking University Founder Group Company Limited [2023] HKCFI 1350 (the “Peking University Case”) and Re Tsinghua Unigroup Co., Ltd [2023] HKCFI 1572 (the “Tsinghua Case”), the Hong Kong Court affirmed the enforceability of keepwell deeds entered into by PRC companies as credit enhancement for bonds issued by their respective offshore subsidiaries. The Court recognised … Read more

Arbitration of Insolvency Disputes: The view from the Australian Courts

Two recent judgments from different Australian courts have considered circumstances in which insolvency disputes can (or cannot) be arbitrated in accordance with pre-existing arbitration agreements. In particular, the decisions address the following two key issues: when certain insolvency claims can be arbitrated; and when a third party can participate in arbitral proceedings either claiming or … Read more

Clearing up the cloud? Perhaps partly, as the Court of Final Appeal affirms the approach to dismissing bankruptcy proceedings in favour of the parties’ agreed forum

If a debt arises from a contract that contains an exclusive jurisdiction clause (EJC) in favour of a foreign court, how will the Hong Kong court deal with a bankruptcy petition based on that debt? A highly anticipated judgment from Hong Kong’s highest court suggests that the bankruptcy petition will likely be dismissed, and that … Read more