Great leap forward: Hong Kong Court issues first letter of request under Mainland-Hong Kong arrangement for mutual recognition of insolvency

In another leap forward for cross-border insolvency cooperation between Hong Kong and Mainland China, the Hong Kong Court has issued its very first letter of request to a Mainland Court requesting recognition and assistance of Hong Kong liquidators under the new arrangement for mutual recognition of and assistance to insolvency proceedings introduced on 14 May … Read more

Hong Kong’s highest court clarifies law on dispositions after winding up

The Hong Kong Court of Final Appeal (the “CFA“) has clarified in a recent judgment the application of section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (“CWUMPO“) and when the court will grant a validation order. As will be familiar to many readers, s182 of CWUMPO provides that any disposition of a … Read more

Not a soft touch – Hong Kong Court’s increased scrutiny of offshore soft-touch provisional liquidations

A recent pair of decisions of the Hong Kong Companies Court (the “Court”) has immense potential significance for debtor companies listed on the Stock Exchange of Hong Kong (“HKEx”) and their Hong Kong creditors. Facts Re Lamtex Holdings Ltd [2021] HKCFI 622 and Re Ping An Securities Group (Holdings) Ltd [2021] HKCFI 651 both involved a familiar factual … Read more

Hong Kong to Introduce Corporate Rescue Regime and Insolvency Trading Regime

After abortive attempts in 2000-2001, 2008-2009, and 2014 to introduce a statutory corporate rescue procedure, the Hong Kong Government has recently announced in a paper submitted to the Legislative Council that it will present the Companies (Corporate Rescue) Bill (the “Bill”) to the Legislative Council in early 2021. Once enacted, the Bill will introduce a … Read more


The natural and most appropriate jurisdiction in which to wind up a company is its place of incorporation. The Hong Kong Companies Court, however, routinely deals with winding up petitions against companies which are incorporated outside Hong Kong, but listed on the Hong Kong Stock Exchange (“HKEx”). Given recent economic difficulties, the number of such … Read more

Will you stay no longer? Hong Kong Companies Court considers general stay provisions in recognition orders

When the Hong Kong Court recognises offshore soft-touch provisional liquidation, will there be an automatic stay of proceedings in Hong Kong? Recently, in Re FDG Electric Vehicles Limited [2020] HKCFI 2931, the Companies Court answered “no”. In doing so, the Court revisited the wording of the standard-form recognition order. Soft-touch provisional liquidations A soft-touch provisional … Read more

To ask or not to ask? That is the question

In Joint And Several Provisional Liquidators Of Hsin Chong Construction Co Ltd (Provisional Liquidators Appointed) v. The Chinese University Of Hong Kong And Others [2020] HKCFI 2434, the Court dismissed the provisional liquidator’s application for directions on the distribution of funds, and explained that an application under section 200(3) of the Companies (Winding Up and … Read more