Hong Kong: Minding the GAP – General Adjournment of Proceedings (GAP) of Hong Kong courts during the latest COVID-19 wave

In brief

From a civil litigation and insolvency perspective, we look at the key impacts of the Hong Kong Courts’ recent General Adjournment of Proceedings (GAP) from 7 March 2022 to 11 April 2022 and related governmental closures.

Key takeaways

1. The recent implementation of GAP has resulted in a de facto stay of new actions and proceedings, and adjournment of existing actions, including bankruptcy and winding-up petitions.
2. While monitoring the GAP situation, debtors and creditors should consider out-of-court options including voluntary liquidations, turnaround and restructurings.
3. Court users should be prepared for backlogs and delays when court business incrementally resumes after GAP.

Continue reading here.