Naomi Moore Quoted by Global Restructuring Review on HK Corporate Rescue Plan
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For its article “Latest Hong Kong corporate rescue plans draw mixed response,” Global Restructuring Review quoted Akin Gump financial restructuring partner Naomi Moore.
The article discusses new restructuring tools to be introduced by the Hong Kong government as part of a bill on corporate rescue and insolvent trading positions in the legislative session that begins in October. Reportedly, the legislation will help turn around companies facing short-term financial problems.
Moore noted that this bill would be a “very welcome development,” particularly “given the current market disruption from COVID-19 and the anticipated increase in financial distress.” She said that the most important feature would be a moratorium on creditor actions. This would give companies breathing space to implement a restructuring, adding, however, that equally important are safeguards to ensure debtors do not abuse the moratorium.