The decision raises new questions about whether cross-border insolvency recognition and assistance between mainland China and Hong Kong will be a two-way street.
The Hong Kong court has for the first time recognised the reorganisation proceedings of a company based in mainland China. The order for recognition granted wide-ranging powers to the mainland-appointed administrators to facilitate the preparation of a reorganisation plan encompassing the assets and creditors of the HNA Group based in Hong Kong. This continues a recent trend of the Hong Kong court to accommodate requests for recognition and assistance without the need for reciprocity from the requesting court. Whether this level of cooperation will pave the way for reciprocity from mainland courts with respect to Hong Kong-initiated proceedings remains to be seen. This Client Alert considers recent decisions in this area and analyses the implications for future cross-border restructurings.
Please see full Alert below for more information.