Naomi Moore Quoted in Global Restructuring Review on New Shenzen Bankruptcy Court
Contact:
Naomi Moore, a financial restructuring partner at Akin Gump, has been quoted in the Global Restructuring Review article “New Shenzhen Bankruptcy Court welcomed in Hong Kong,” which reports on the opening of China’s first specialist bankruptcy court.
The new court, the article notes, will have jurisdiction over compulsory liquidation and bankruptcy cases, as well as over cases related to ongoing bankruptcies. It will also preside over both domestic and cross-border bankruptcies.
Moore said she thinks the establishment of the courts “can only be a positive development for Hong Kong,” given its geographical proximity to Shenzhen and the number of Chinese groups listed on the Hong Kong Stock Exchange. The bankruptcy court's creation, she added, will also complement plans for reciprocal arrangements between Hong Kong and the mainland in respect of bankruptcy matters.
“All of this is well timed given the recent increase in Chinese bond defaults and the new structures we are seeing where onshore PRC companies have either issued or guaranteed foreign law governed bonds to offshore creditors,” Moore observed. “These new structures will naturally give rise to more cross-border issues that will need to be solved when those issuers or guarantors become distressed.”