Keeping the door open: Hong Kong Court reaffirms commitment to mutual recognition of insolvency proceedings with Mainland China

11 July, 2023
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 … 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

10 May, 2023
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

Herbert Smith Freehills successfully strike out a HK$3 billion fraudulent trading claim commenced against an IPO sponsor in breach of mandatory procedural rules

26 July, 2022
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

COMI is first port of call – a modified framework for recognising foreign insolvency proceedings in Hong Kong

25 July, 2022
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

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

20 June, 2022
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

20 May, 2022
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

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

07 April, 2022
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