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

Hong Kong Court continues to recognise and assist Mainland insolvency proceedings

The recent decision in Re The Liquidator of Shenzhen Everich Supply Chain Co, Ltd (in liquidation in the People’s Republic of China) [2020] HKCFI 965 reaffirms the willingness of the Hong Kong Companies Court (the “Companies Court”) to recognise the winding-up of a company in Mainland China and thereby grant recognition and assistance to liquidators … Read more

Hong Kong Court calls for “immediate” improvements to insolvency legislation

In The Joint and Several Provisional Liquidators of China Oil Gangran Energy Group Holdings Limited [2020] HKCFI 825, the Hong Kong Court continued a trend of recognising foreign soft-touch provisional liquidators. In this case, the Joint and Several Provisional Liquidators (the “JPLs”) were appointed over China Oil Gangran Energy Group Holdings Limited (“China Oil”), (a … Read more

You big old softie you: Hong Kong Court grants power to foreign soft-touch provisional liquidators to facilitate restructuring

In Joint Provisional Liquidators of Moody Technology Holdings Ltd [2020] HKCFI 416, the Hong Kong Court of First Instance (the “Hong Kong Court”) granted a recognition order to foreign provisional liquidators who were appointed on a soft-touch basis, to explore and facilitate the restructuring of a company. The order was made despite soft-touch provisional liquidation … Read more