News & Analysis as of

Insolvency Hong Kong

A&O Shearman

Committees of inspection in Hong Kong liquidations explained: Who sits at the table?

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Following the making of a winding-up order by the Hong Kong Court, a provisional liquidator or a liquidator can decide whether to apply to the Hong Kong Court for appointment of certain creditors and contributories to form a...more

Latham & Watkins LLP

Cross-border Dialogue Between Hong Kong And Mainland China on Insolvency Law

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In January 2025 in Beijing, a delegation of INSOL members led by Andrew Koo (INSOL Fellow) and John Lees (INSOL Past President) together with Hong Kong barrister Michael Lok, Alexander Tang (INSOL Fellow), and Howard Lam...more

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

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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

BCLP

Adjudication and Insolvency: Interface of Two Statutory Regimes Affecting the Construction Industry

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Adjudication has become a key tool in the construction industry, helping employers and contractors resolve disputes quickly and keep cash flowing on projects. But when insolvency enters the picture, things can get tricky —...more

Latham & Watkins LLP

Cram-across: Sino-Ocean Restructuring Plan Makes Waves

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The evolution of the English RP continues to push the jurisdictional envelope. The English court’s sanction of the Sino-Ocean restructuring plan (RP) marks an interesting development in the evolution of the English RP....more

Conyers

Hong Kong Court Grants Recognition and Assistance to Official Liquidators Appointed in the British Virgin Islands

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On 23 October 2024, Deputy High Court Judge Le Pichon of the Court of First Instance in the High Court of the Hong Kong SAR granted recognition and assistance to Chan Ho Yin (also known as Michael Chan) (“Mr Chan“) of Kroll...more

Conyers

Top 5 Hong Kong Publications of 2024

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In Hong Kong, our most popular thought leadership provided clients with vital information on Cayman Islands investment funds, accompanying questions of corporate governance, and the key advantages of Cayman companies for...more

BCLP

HK Security of Payment Bill: Government Responds to Submissions from the Public

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The Hong Kong Government received 37 submissions from the public in July 2024 regarding the Construction Industry Security of Payment Bill (“Bill”) and held discussions with deputations from different stakeholders at a LegCo...more

BCLP

HK Security of Payment Bill: An Insolvency Exception to Ban Against “Pay When Paid” Clauses?

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On 16 July 2024, the Hong Kong LegCo Bills Committee which is considering the Construction Industry Security of Payment Bill (“Bill”) held a meeting to receive representations and submissions on the Bill from deputations sent...more

Hogan Lovells

Trading in the twilight – a recent UK case may pose risks for Hong Kong company directors who “postpone the inevitable"

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When a company is in financial distress, directors face difficult choices. Should they trade on to try to “trade out” of the company’s financial difficulties or should they file for insolvency? If they act too soon, will...more

White & Case LLP

Arbitration and Insolvency: A Comparative View from England & Wales, Singapore and Hong Kong

White & Case LLP on

If the agreement between a creditor and debtor refers disputes to arbitration, what limits should be placed on the creditor to pursue winding-up proceedings based on an unpaid debt under that agreement? Should a court simply...more

A&O Shearman

Sanction for scheme of arrangement refused by Hong Kong court: Key takeaways

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Notwithstanding that the requisite statutory majority was obtained in the relevant creditors’ scheme meeting, the Hong Kong Companies Court refused to sanction a scheme of arrangement propounded by a company that professed to...more

A&O Shearman

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

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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

No clear picture - Hong Kong court criticises legal representatives in refusing to sanction scheme of arrangement

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A Hong Kong court has refused to sanction a scheme of arrangement, saying that practitioners should explain the key terms and effect of any proposed restructuring in a way which can be easily understood by the creditors and...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

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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

Hogan Lovells

Not set in stone – Hong Kong court approves post-implementation modifications to scheme of arrangement

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The Hong Kong High Court has given a rare order for modifications to a scheme of arrangement after it had been implemented incorrectly by the scheme administrators. Drawing on instances in which the English courts have...more

Hogan Lovells

Liquidator knows best - Hong Kong court rejects bid to force information disclosure on funding and strategy

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A Hong Kong court has rejected a bid to force liquidators to provide information and documents regarding their plans and strategies on related litigation as well as information on legal costs and funding arrangements....more

Mayer Brown

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

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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

A&O Shearman

SGCA sets a limit on debtors invoking arbitration clauses to resist winding up applications

A&O Shearman on

In Founder Group (Hong Kong) Ltd v Singapore JHC Co Pte Ltd (2023), the Court of Appeal set limits on a debtor’s ability to resist a winding up application by pointing to an arbitration clause in the underlying agreement....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

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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

Insolvency and construction in Hong Kong – building in the uncertainties

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According to a recent report, nearly 6,000 construction companies in the UK are in danger of going out of business. In Hong Kong, a major contractor has lost its licence and was removed from the government's registered list...more

Hogan Lovells

Hong Kong and PRC Restructuring & Special Situations 2023 year in review - Key insolvency decisions in Hong Kong and the People’s...

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The past twelve months have been a time of continuing significant developments in courtled corporate rescues in Hong Kong, all within the flexible confines of the common law and in the continued absence of a statutory...more

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