IFLR Quotes Naomi Moore on HK CFA Decision re: Req’s for Winding Up Foreign Companies
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International Financial Law Review has quoted Akin Gump financial restructuring partner Naomi Moore for its article “HK Court of Final Appeal clarifies requirements on winding up foreign companies.”
The article discusses the Hong Kong Court of Final Appeal (CFA) decision in a case involving Shandong Chenming Paper Holdings, which it says yielded greater clarity on the second of three core requirements to wind up a foreign company: whether there is a reasonable possibility that the winding-up order would benefit those applying for it.
Moore said, “The court has clarified that the mere prospect of a winding-up order at the time the petition was presented would have put commercial pressure on a debtor to repay a debt amounts to a sufficient benefit to creditors.”
She added that the threshold to satisfy this core requirement per the court’s decision “is quite low and should not be difficult for creditors with genuine debt claims to satisfy – particularly where the debtor is listed in Hong Kong SAR – given the adverse implications a winding up order can have on a company’s listing, although the other two core requirements would also still need to be satisfied.”