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.
- 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.
- While monitoring the GAP situation, debtors and creditors should consider out-of-court options including voluntary liquidations, turnaround and restructurings.
- Court users should be prepared for backlogs and delays when court business incrementally resumes after GAP.
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