IFLR Publishes Moore, Cohen, Haywood Article on Hong Kong SAR Cross-Border Insolvency Landscape

IFLR has published the article 'Hong Kong SAR cross-border insolvency landscape evolves for Chinese corporates,' written by Akin Gump financial restructuring partner Naomi Moore, litigation partner Daniel Cohen and financial restructuring counsel Jeremy Haywood. The article explains the implications of recent Hong Kong SAR court rulings on cross-border insolvency cases involving Stock Exchange of Hong Kong (HKEX)-listed mainland Chinese companies.

The authors begin with a look at why the Hong Kong SAR 'is often a jurisdiction of focus for creditors of a mainland Chinese corporate group in a default and enforcement scenario.' They cite several examples of recent cases, observing that the courts in Hong Kong will likely apply 'closer scrutiny to the economic and strategic value' of a listing in determining whether certain core requirements have been met.

The article then discusses a common strategic approach for offshore-incorporated HKEX-listed companies faced with a local winding-up petition in Hong Kong SAR. It also looks at what may be next in the evolving landscape, concluding that changes will 'no doubt continue if the framework between mainland China and Hong Kong SAR on cross-border cooperation in corporate insolvency matters, which is currently being discussed, comes into play.'