COMI as first port of call? Harris J lays out a modified common law framework for recognising foreign insolvency proceedings in Hong Kong

Historically, the Hong Kong courts have generally recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong following the recent decision of Provisional Liquidator of Global Brands Group Holding Ltd v Computershare Hong Kong Trustees Ltd [2022] HKCFI 1789 (Global Brands). … Read more

Crypto winter is here – what does it mean for insolvency practitioners?

The global market in crypto assets is currently experiencing a “crypto winter”, losing approximately US$2 trillion in value since the peak rally in 2021.[1] The price of Bitcoin has retreated approximately 70% from its November 2021 high of nearly US$69,000. In this stormy environment crypto insolvencies are on the rise. However the rapidly evolving nature … Read more

Can a Chapter 15 order discharge US law governed debt for the purposes of the rule in Gibbs? The Rare Earth and Modern Land decisions

On 6 June 2022, Mr Justice Harris sanctioned a Hong Kong scheme of arrangement for Rare Earth Magnesium Technology Group (the Company) in re Rare Earth Magnesium Technology Limited [2022] HKFCI 1686 (Rare Earth). In some obiter remarks made in the course of that decision, Harris J suggested that a common restructuring practice might not … Read more

Herbert Smith Freehills secures further victory in Hong Kong’s Court of Appeal for bank in defending liquidator claim for fraud

Last week, the Hong Kong Court of Appeal refused to grant liquidators (the Liquidators) of Galleria (Hong Kong) Limited (Galleria), a Hong Kong company, leave to appeal to the Court of Final Appeal in relation to their action against one of Galleria’s former lenders (the Bank) for knowing receipt, dishonest assistance and fraudulent trading. The … Read more

Hong Kong Court holds that commercial decisions in a voluntary winding up fall in the remit of a liquidator

We previously wrote about the Court’s attitude to liquidators’ applications for directions on matters arising in a compulsory winding up (i.e., by the court) under section 200 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32 (CWUMPO) (see our articles here and here). For voluntary winding ups, a similar provision, being section 255 of CWUMPO, applies. … Read more

Hong Kong Court issues letter of request under Mainland-Hong Kong arrangement for recognition in respect of Cayman company

In a further development to cross-border insolvency cooperation between Hong Kong and Mainland China, the Hong Kong Court has issued a letter of request to a Mainland Court requesting recognition and assistance of Hong Kong liquidators appointed over a Cayman company, under the mutual recognition arrangement introduced on 14 May 2021 (the Arrangement, see our … Read more