Last week, the Hong Kong Court struck out a fraudulent trading claim brought by the liquidators (the “Liquidators“) of China Metal Recycling (Holdings) Limited (“China Metal“) against one of its sponsors (the “Sponsor“) on the ground that it was brought as a High Court Writ action (the “Action“), in breach of the mandatory statutory requirement … Read more

Historically, the common law has only recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong. Going forward, a Hong Kong court will now recognise foreign insolvency proceedings in the jurisdiction of the company’s “centre of main interests” (COMI). Indeed, it … Read more

The Hong Kong Court of Final Appeal has taken a practical approach in interpreting the second core requirement, out of three needed, for a Hong Kong Court to exercise its discretion to wind up a foreign company. Bringing much relief to creditors, it has decided that commercial pressure to achieve repayment of a debt is … Read more

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

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 … Read more

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

In Re Grand Peace Group Holdings Limited [2021] HKCFI 2361, the Hong Kong Court refused to exercise its discretionary jurisdiction to wind up an offshore holding company due to difficulties in the recognition of Hong Kong liquidators in the BVI. Background The company was incorporated in Bermuda (the “Company”) and had been delisted from the … Read more

The Court of First Instance recently rejected an attempt by Bank of China (Hong Kong) Limited (BOCHK) to strike out various claims brought against it by the liquidators of China Medical Technologies (China Medical). The liquidators’ claims related to BOCHK’s handling of funds deposited with it by China Medical’s former officers, which were allegedly obtained … Read more