Hong Kong SAR does not have a statutory corporate rescue regime. Many restructurings take the form of workouts, implemented by consent or by way of a Hong Kong SAR law scheme of arrangement.
The court appointment of a provisional liquidator, which displaces the company’s directors and includes a statutory stay on proceedings, may be used to facilitate a corporate rescue. However, this is a somewhat limited rescue device as a provisional liquidator can only be appointed where the company’s assets are in jeopardy. It is often coupled with a scheme of arrangement, which contains no moratorium preventing creditor action.
There are no statutory provisions for the court to provide assistance on cross-border insolvencies and Hong Kong is …
Read the full article at: https://www.iflr.com/article/b1nf2mqp7dl3tt/corporate-insolvency-amp-restructuring-report-2020-covid19-special-focus-hong-kong-sar
