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

Statutory but not mandatory – a reminder of the first principles

Statutory demand is a common and important tool in the winding up process. But recently, the Hong Kong Court of First Instance has reminded us that it is by no means a must. In Synergy Lighting Ltd v Hongkong and Shanghai Banking Corp Ltd [2020] HKCFI 2490, the Court emphasised that even though the requirement … Read more

Good faith in bad times

Can a good faith obligation under PRC law preclude a party from bringing a winding up petition in Hong Kong? A recent Hong Kong Court of First Instance suggests not. In Harbor Prosper (HK) Investments Ltd v. Elegant Profit (Hong Kong) Ltd [2020] HKCFI 2261, the respondent to a winding up petition argued that it … Read more

New guide to restructuring and insolvency in Mainland China

Restructuring and insolvency in China is evolving and investors must stay ahead of the latest developments. Our new guide, The Basics of Restructuring and Insolvency Law in Mainland China, provides an essential roadmap for both investors and practitioners. While offshore stakeholders have historically been cautious in engaging in onshore insolvency processes, recent developments demand a … Read more

Three requirements for winding up foreign company restated by Hong Kong Court of Appeal

The long-running saga between Shandong Chenming Paper Holdings (“Shandong Chenming“) and Arjowiggins HKK2 Ltd (“Arjowiggins“) has continued with the Court of Appeal handing down its judgment on an appeal against a lower court judgment which had dismissed Shandong Chenming’s application to injunct Arjowiggins from presenting a winding-up petition against Shandong Chenming (Shandong Chenming Paper Holdings … Read more