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Hong Kong Winding Up Petitions

BCLP

“Dividing Line” in Public Policy - Insolvency and Arbitration

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A creditor commences winding-up proceedings against a debtor company on the basis that the company is insolvent. The petition debt relates to a dispute within the ambit of the arbitration agreement between the creditor and...more

Carey Olsen

The interplay between insolvency and arbitration proceedings: an insight into developments across jurisdictions

Carey Olsen on

Arbitration clauses are commonly found in commercial contracts. However, tricky issues arise when a company subsequently seeks an order for winding up, particularly in circumstances where the facts relied on in support of the...more

Conyers

Winding-Up Petition Struck Out, Joint Provisional Liquidators Discharged in Bermuda

Conyers on

On 15 May 2024, the Bermuda Court granted an order striking out a winding-up petition (the “Petition”), setting aside an earlier order appointing joint provisional liquidators (“JPLs”), and discharging the JPLs appointed over...more

A&O Shearman

Insolvency vs Arbitration – Privy Council’s revival of the “Established Approach”

A&O Shearman on

How does an arbitration clause, or an exclusive jurisdiction clause in favour of foreign courts, affect insolvency proceedings? The effect of an arbitration clause, or an exclusive jurisdiction clause in favour of foreign...more

Hogan Lovells

Hong Kong Court of Appeal rules arbitration agreement trumps winding-up petition in insolvency

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The Hong Kong Court of Appeal has finally laid to rest the vexed issue of whether an arbitration agreement or a winding-up petition should take precedence in an insolvency situation. In two parallel decisions, the Court of...more

Conyers

Successfully Secures Dismissal of Application to Set Aside a Statutory Demand in the British Virgin Islands

Conyers on

On 8 February 2024, the Honourable Mr Justice Paul Webster KC dismissed an application to set aside a statutory demand served on Angola Group Holdings Limited (the “Company”) by Bai Jun Tian Cheng Limited (“Bai Jun”). Conyers...more

Mayer Brown

Understanding the Trends: A Review of Insolvency Litigation in Hong Kong in 2023

Mayer Brown on

Insolvency litigation witnessed intriguing developments across multiple aspects in Hong Kong in 2023, ranging from the court’s updated Practice Direction on Bankruptcy and Winding-Up Proceedings to on-going debate surrounding...more

Mayer Brown

Unravelling the Legal Landscape: Key Highlights of Company Litigation Developments in Hong Kong in 2023

Mayer Brown on

Here we present a concise summary of significant cases and developments in company litigation in Hong Kong in 2023. Highlights include: 1. Subject company's participation in unfair prejudice proceedings: The Court once...more

Hogan Lovells

Insolvency in a modern age – Official Receiver filing changes now in force in Hong Kong

Hogan Lovells on

New statutory provisions have come into effect that will modernise the way documents are filed with the Official Receiver in Hong Kong. The changes, which took place on the last working day of 2023, pave the way for the...more

Hogan Lovells

Arbitration agreements vs. winding up petitions – Hong Kong Court of Appeal to decide

Hogan Lovells on

On 25 October 2023, the Hong Kong Court of First Instance granted leave to appeal the decision in Shandong Chenming Paper Holdings Ltd [2023] HKCFI 2065 to dismiss a winding up petition in favour of arbitration. This opens...more

Hogan Lovells

AnAn affirmed – Singapore court confirms arbitration agreements trump winding-up applications

Hogan Lovells on

The Singapore High Court has again confirmed that a winding-up application concerning a disputed debt that is subject to an arbitration agreement will be dismissed if the arbitration agreement is prima facie valid and covers...more

Hogan Lovells

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

Hogan Lovells on

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

Latham & Watkins LLP

Hong Kong and BVI Courts Differ on Whether Noteholders Have Standing to Petition for Winding-Up

Latham & Watkins LLP on

The Hong Kong Court confirmed that noteholders with beneficial interest in global notes do not have standing to present winding-up petitions against issuers. Meanwhile, the BVI Court reached the opposite conclusion in a...more

Hogan Lovells

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

Hogan Lovells on

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

Latham & Watkins LLP

Hong Kong Court Orders Winding-Up of Company Despite Parties’ Arbitration Agreement

Latham & Watkins LLP on

A recent ruling shows that an arbitration agreement alone is not necessarily a complete defence to a Hong Kong winding-up petition. The Hong Kong Companies Court recently issued a winding-up order against a debtor company,...more

Hogan Lovells

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

Hogan Lovells on

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

Hogan Lovells

The carnival concludes – directors who opposed winding up ordered to pay costs

Hogan Lovells on

Directors who opposed a winding up action citing an unrealistic restructuring proposal have now been ordered to pay costs, after a swift follow-on decision by the Hong Kong Companies Court....more

Hogan Lovells

The carnival is over – directors face cost consequences of opposing winding up

Hogan Lovells on

Directors who oppose company windings up with little more than a hope that a restructuring proposal may bear fruit may have to weigh their actions carefully going forward, following a recent decision by the Hong Kong...more

Hogan Lovells

Hong Kong court issues stunning criticism of provisional liquidators for abusing winding-up procedure

Hogan Lovells on

A Hong Kong court has severely criticised the provisional liquidators (PLs) appointed by the court in the company’s place of incorporation in the Cayman Islands, for trying to interfere with the rights of creditors in Hong...more

Hogan Lovells

Hong Kong court gives creditors the nod to sue despite Chapter 15 scheme recognition

Hogan Lovells on

The Hong Kong court has sanctioned a scheme of arrangement for a Hong Kong-listed, Bermuda-incorporated fertilizer manufacturer based in the mainland. In doing so, the Honorable Mr Justice Harris also warned holders of U.S....more

Hogan Lovells

Deja vu? Hong Kong court orders winding-up of Bermuda-based listco despite PLs' objections

Hogan Lovells on

The Court of First Instance held in Re Up Energy Development Group Limited [2022] HKCFI 1329 that where the three core requirements for winding-up a foreign company under section 327(1) of the Companies (Winding up and...more

Hogan Lovells

Welcome Leverage – Hong Kong Court of Final Appeal confirms mere threat of winding-up is enough to confer jurisdiction

Hogan Lovells on

In Shandong Chenming Paper Holdings Limited v Arjowiggins HKK2 Limited [2022] HKCFA 11, the Court of Final Appeal has confirmed that the "leverage" created by the prospect of a winding-up – as opposed to the making of a...more

Hogan Lovells

Educational lesson – Hong Kong court stays just and equitable winding-up petition to arbitration

Hogan Lovells on

Student loan debt is a complex issue for both employees and employers. Employees must live with the overwhelming burden of paying off the loan in addition to paying personal expenses. However, employers who offer valuable...more

Hogan Lovells

Pointless – English High Court winds up listed plc for losing its purpose

Hogan Lovells on

For the first time in England & Wales, a court has ordered the winding-up of a listed plc on the grounds of loss of substratum – the abandonment of the company's original main object and purpose. If Hong Kong follows this...more

Conyers

Cayman Islands Restructuring: What amounts to a “Rational Basis”?

Conyers on

In the recent decision of Evergreen International Holdings Limited, delivered on 11 January 2022, the Grand Court of the Cayman Islands made an order for the immediate winding up of a company notwithstanding the company’s...more

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