Despite a tough period for businesses in Hong Kong the introduction of a corporate rescue procedure remains elusive, says Johnson Kong, Managing Director at BDO Hong Kong
Not all jurisdictions offer companies the breathing space in which to restructure while keeping creditors at bay. In Hong Kong, for example, although recommended by the Law Reform Commission back in 1996, the introduction of a corporate rescue procedure called provisional supervision is still in the making.
Under administration in the UK or Chapter 11 in the US restructuring can take place with a moratorium on legal action. However, such mechanisms are currently out of reach in Hong Kong. Despite several promising first steps, they remain elusive, says Johnson Kong, M…
Read the full article at: https://www.icaew.com/insights/viewpoints-on-the-news/2021/april-2021/business-rescue-hong-kong-still-waiting-for-a-moratorium-mechanism
