5 February 2025
R&I Update - February 2025 – 4 of 6 Insights
The Hong Kong courts have been committed to recognising and assisting foreign insolvency proceedings by empowering foreign liquidators to deal with assets located in Hong Kong. A recent decision has clarified their position on recognition for 'managerial assistance'.
In 2022, the Hong Kong courts held that orders for recognition and assistance will be granted for foreign insolvency proceedings commenced in jurisdictions where the company’s centre of main interests (COMI) is located. Otherwise, such applications will be declined (Re Global Brands Group Holdings Ltd) subject to two exceptions, where:
In Re Bull’s-Eye Ltd, the joint liquidators (JLs) of a company incorporated in the British Virgin Islands (BVI) and wound up by BVI courts, sought recognition and assistance from the Hong Kong courts to deal with assets located in Hong Kong.
Despite foreign insolvency proceedings being brought in the company’s place of incorporation rather than where its COMI is located, the court granted managerial assistance to the JLs. This allowed the JLs to take possession of the bank accounts controlled by the company under liquidation in Hong Kong.
Find out more
To discuss the issues raised in this article in more detail, please contact a member of our Restructuring and Insolvency team.
5 February 2025
5 February 2025
5 February 2025
5 February 2025
by Mark Chan
5 February 2025
5 February 2025