When people talk about Hong Kong as an international financial centre, what immediately comes to mind are its vibrant capital market, its efficient banking system, the ease and economy of incorporating and operating companies here, and the robust and transparent legal system that supports them.
But what is less commonly known is that Hong Kong is also a well-known international restructuring and insolvency hub.
Restructuring and insolvency (R&I) refer to the situation in which a company and its business run into financial difficulty, with the company and its creditors (for example, banks, private credit providers and bondholders) first trying to restructure the company’s debts to give it an opportunity to turn its business around. If…
