When a company is in the so-called “twilight zone” approaching insolvency, it is well-established that the directors’ fiduciary duties require them to take into account interest of creditors (the so-called “creditor duty”). In the recent decision of Stephen John Hunt v Jagtar Singh [2023] EWHC 1784 (Ch), the English High Court examined whether it is necessary to … Read more

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

In Re Leading Holdings Group Limited [2023] HKCFI 1770, the Hong Kong Court has made it clear for the first time that, based on a construction of the contractual documentation, investors with an indirect participation in notes issued by a company have no standing to petition for winding up of the issuer, despite their obvious commercial … Read more

The Federal Court of Australia recently determined an application brought by the administrators of a company in voluntary administration seeking judicial guidance on how to deal with claims for costs and interests resulting from two prior arbitrations. The key issue was whether the costs and interests awarded in the previous arbitrations were admissible to proof … Read more

Singapore’s highest court has definitively held that foreign insolvency, restructuring or liquidation proceedings concerning solvent companies should be recognised in Singapore (Re Ascentra Holdings, Inc (in official liquidation) v SPGK Pte Ltd [2023] SGCA 32), overturning a first instance decision taking the contrary view. The Singapore Court of Appeal accepted the first appellant’s (“Ascentra“) submission … Read more

Two recent cases, Re Guangdong Overseas Construction Corporation [2023] HKCFI 1340 (the GOCC Case) and Re Trinity International Brands Limited [2023] HKCFI 1581 (the Trinity Case), reaffirm the commitment of the Hong Kong Court to cooperating with the Mainland Court in terms of mutual recognition and assistance of insolvency proceedings. These cases show that the Hong Kong … Read more

The Parliamentary Joint Committee on Corporations and Financial Services (the Committee) has delivered its report following an inquiry into the “effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy”.[1] The Committee has recommended that, as soon as practicable, the Australian government should commission … Read more

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