Global Restructuring Review Publishes Article by Mark Fucci and Naomi Moore on Chinese Bankruptcies and Offshore Bond Defaults

Akin Gump financial restructuring partners Mark Fucci and Naomi Moore have co-authored the article “Is it the structure? Chinese onshore bankruptcies and offshore bond default,” which was published in Global Restructuring Review. The article examines recent onshore bankruptcies of Chinese operating subsidiaries as they relate to China’s insolvency system.

Fucci and Moore write that offshore bondholders in restructurings of Chinese issuers “face a double-edged sword of structural subordination and often hostile insolvency regimes.” They note that this usually makes restructurings more challenging than what unsecured creditors face in Chapter 11. Bondholders, they observe, are best served by organizing themselves “at an early stage and pursuing a consensual restructuring in parallel with effective contingency planning in case such a solution proves to be elusive.”

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