Naomi Moore Quoted in Global Restructuring Review on Hong Kong/China Cross-Border Insolvency Arrangement

Global Restructuring Review has quoted Akin Gump financial restructuring partner Naomi Moore in the article “Hong Kong and mainland agree cross-border insolvency arrangement.” The article reports on a new agreement between Hong Kong and mainland China regarding mutual recognition and assistance in insolvency proceedings.

According to GRR, a deal was signed last week that would allow Hong Kong liquidators and mainland administrators to apply for recognition in each other’s jurisdictions. The cooperation arrangement expressly covers bankruptcy and reorganizations in the mainland, the article says, as well as winding up proceedings and schemes of arrangement in Hong Kong.

Moore said further details are still needed, but having a mechanism to allow recognition of liquidators in the mainland should give Hong Kong officeholders “a real advantage” over officeholders appointed in other jurisdictions that don’t have a cooperation agreement.

“This may lead to more winding up petitions being brought in Hong Kong instead of the offshore jurisdictions in the context of Chinese group failures,” said Moore. “The cooperation arrangement between mainland China and Hong Kong is a significant and positive development for offshore creditors that are exposed to the many mainland Chinese corporate groups that are listed in Hong Kong.”

Moore recently co-authored an article for IFLR on the implications of recent Hong Kong SAR court rulings on cross-border insolvency cases involving Stock Exchange of Hong Kong-listed mainland Chinese companies. To read the article, please click here.