Hong Kong court considers grounds for striking out claims of dishonest assistance, knowing receipt and fraudulent trading

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

To ask or not to ask? That is the question (2)

As discussed in our previous blog post, the decision for provisional liquidators to apply for directions on the distribution of funds can be a difficult one to make. In the Hong Kong Court of Appeal decision Joint And Several Provisional Liquidators Of Hsin Chong Construction Co Ltd (Provisional Liquidators Appointed) v. the Chinese University Of … Read more

Hong Kong Court recognises Mainland reorganisation for the first time

The Hong Kong Court has broken yet more new ground by recognising Mainland reorganisation proceedings for the first time in Re HNA Group Co Limited [2021] HKCFI 2897. Previously, Mainland liquidation proceedings had been recognised by the Hong Kong Court (for the first time in CEFC Shanghai International Group Ltd [2020] HKCFI 965, and later … Read more

It still counts: Hong Kong Court finds minority shareholding has reasonable possibility to benefit winding-up petitioner

It is well-established that certain core jurisdictional requirements must normally be met before a Hong Kong Court will exercise its discretion to wind up a foreign company (Core Jurisdictional Requirements). These were explained in our previous post: there must be a sufficient connection with Hong Kong, but this does not necessarily have to consist in … Read more

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