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Agree to disagree - does winding-up or arbitration take precedence in insolvency?

Three recent Hong Kong first instance court decisions have left undecided the question of whether a winding-up petition will trump an agreement to arbitrate when it comes to a winding-up and particularly in the context of...more

A fresh start - Hong Kong court decides tribunal had no jurisdiction to join additional party

The Hong Kong court has ruled that a tribunal had no jurisdiction over a third party that had been joined as an additional party to an HKIAC arbitration. The court in R v A [2023] HKCFI 2034 ordered that a summons issued by...more

Not a leg to stand on - Hong Kong court blocks noteholder from presenting winding-up petition

The Hong Kong court has handed down a significant decision on the issue of whether an individual bondholder under a global note can present a winding up petition against a bond issuer. The court in Re Leading Holdings Group...more

Hong Kong Court of Final Appeal confirms escalation clauses not subject to review by courts

In C v D [2023] HKCFA 16, the Hong Kong Court of Final Appeal confirmed that compliance with pre-arbitration conditions in an escalation clause is a matter of admissibility, rather than a jurisdictional issue, and is not...more

Beyond the scope - recognition of mainland liquidation by Hong Kong court achieved through common law

In the case of Re Guangdong Overseas Construction Corporation [2023] HKCFI 1340, the Honourable Madam Justice Linda Chan recognized and provided assistance to a mainland China appointed administrator over a mainland China...more

Kept-well: Hong Kong court hands keepwell trustee significant win

A Hong Kong court has awarded a trustee enforcing obligations under a keepwell deed more than US$489 million after finding the keepwell provider to be in breach. The decision by the Honourable Mr Justice Harris in Citicorp...more

6/19/2023  /  Creditors , Hong Kong , Insolvency , Trustees

No concrete proposal - Hong Kong court calls for debtor companies to show realistic restructuring proposals

A Hong Kong court has reminded debtors of the need to present a credible and realistic restructuring proposal when facing creditors threatening winding up actions. In Re Jiayuan International Group Limited (佳源國際控股有限公司) [2023]...more

Hong Kong court rules keepwell deeds are enforceable in first of its kind decision

In the latest development regarding the validity and enforceability of keepwell deeds in the "Peking Founder” litigation, a Hong Kong court has awarded more than US$164 million by way of damages to one of the plaintiffs who...more

Petition barred - Hong Kong CFA confirms primacy of exclusive jurisdiction clause in bankruptcy

The Hong Kong Court of Final Appeal (CFA) has confirmed a Court of Appeal finding that the court should respect the effect of an exclusive jurisdiction clause in bankruptcy proceedings, just as it does in ordinary civil...more

Refrozen - Hong Kong Court of Appeal confirms lawfulness of "letters of no consent" regime

The Hong Kong Court of Appeal has overturned a first instance judgment that had held that the longstanding use of "letters of no consent" to preserve monies held in bank accounts suspected of harbouring the proceeds of crime,...more

A whole new world – Hong Kong court declares crypto assets are property and can be held on trust

A Hong Kong court has for the first time declared that cryptocurrencies are property and capable of being held on trust. In a landmark ruling, the Honourable Madam Justice Linda Chan, in Re Gatecoin Limited [2023] HKCFI 91,...more

Denial of process – Hong Kong court sets aside award, finding arbitrator's conduct "seriously flawed"

A Hong Kong court has set aside an HKIAC Final Award finding that the arbitrator's conduct was so "seriously flawed" and "egregious" that there had been a serious denial of due process....more

Foreign exchange - Hong Kong court orders winding up of listco already wound up in Cayman Islands

In another blow to the concept of "soft touch" provisional liquidation, the Court of First Instance has granted an ancillary winding up order against a Hong Kong listed company that had already been wound up in its place of...more

A right to be heard – Hong Kong court says it need only be "reasonable"

Parties to an arbitration only need to be given a "reasonable" opportunity to present their case and to address the cases of their opponents under the Hong Kong Arbitration Ordinance. So ruled the Honourable Justice Mimmie...more

Parallel lines – Hong Kong Airlines undergoes English and Hong Kong restructuring

Hong Kong’s last remaining independent airline carrier, Hong Kong Airlines Limited has undergone a significant debt restructuring. In parallel proceedings (a restructuring plan in the UK and a scheme of arrangement in Hong...more

Hybrid jurisdiction clauses – two new English and Hong Kong cases give confidence to lenders

Two recent English and Hong Kong court decisions have given confidence to lenders that they should be able to enforce their rights against creditors under so-called asymmetric or hybrid dispute resolution clauses....more

Arbitration Highlights in the Year of the Rabbit

As the world welcomes in the Year of the Rabbit, we look back at seven decisions that made an impact over the past year. In the decisions, the Hong Kong courts considered the circumstances in which interim relief should...more

Keep out of the way – first Hong Kong conviction for obstruction under s.382 SFO

A Hong Kong court has for the first time convicted and imprisoned an individual for obstructing employees of the Securities and Futures Commission (SFC) in performance of their functions pursuant to the Securities and Futures...more

The final frontier - Hong Kong Court of Final Appeal grants leave to appeal in arbitration escalation clauses dispute

The Hong Kong Court of Final Appeal has granted leave to appeal in the case of C v D [2022] HKCFA 25, against last year's finding by the Court of Appeal that the validity of "escalation clauses" – multi-tiered dispute...more

Privacy in its place – Hong Kong court declines to grant interim measures protecting identity of mystery product

The Hong Kong court has dismissed an application seeking to restrain a party to an arbitration from publishing information relating to arbitrations commenced in relation to an unspecified product. In A v B [2022] HKCFI 3620,...more

RCEP – Hong Kong seeks early accession to world's largest free trade agreement

The Hong Kong government expects to begin discussions next year to join the Regional Comprehensive Economic Partnership (RCEP). RCEP, the largest free trade agreement ever, should have the effect of lowering tariffs,...more

Moving in unity – Hong Kong court does away with deed of contribution requirement in sanctioning guarantor's scheme

In Re Unity Group Holdings International Ltd [2022] HKCFI 3419, the Hong Kong court has for the first time sanctioned a scheme of arrangement that releases debts of third-party obligors that were guaranteed by the scheme...more

Restructuring & Special Situations 2022 Year in Review Key insolvency decisions in Hong Kong and the People’s Republic of China

2022 has been a year which has seen significant developments in court-led corporate rescue and insolvency law reform in Hong Kong. In light of the lingering COVID19 pandemic, it was all the more important that the Hong Kong...more

Cross-border enforcement of judgments in Hong Kong and the PRC – a new dawn? Talking Point Asia – November 2022

A wide-ranging mechanism allowing for reciprocal enforcement of judgments in mainland China and Hong Kong has come one stage closer with the gazetting on 4 November 2022 of the Mainland Judgments in Civil and Commercial...more

Adopting the CISG – Hong Kong enhances its openness to international trade Talking Point Asia – November 2022

An important international convention, which promises to free up trade between Hong Kong and some of its most important trading partners, comes into force on 1 December 2022. Businesses who enter into international...more

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