In brief On 14 May 2021, the Supreme Peopleās Court (SPC) and the Hong Kong government agreed a framework (āFrameworkā) for judicial cooperation in corporate insolvency and debt restructuring. Under the Framework: A Mainland bankruptcy administrator may apply to the Hong Kong High Court for recognition of and assistance to Mainland bankruptcy proceedings. A Hong Kong liquidator or provisional liquidator may apply to the Intermediate Peopleās Court at a designated pilot area for recognition of…
Introduction The bankruptcy regime was a major milestone for China. For the first time in its history, China now has a unified and comprehensive bankruptcy system covering all types of enterprises, including foreign investment vehicles and state-owned enterprises. Similar to many jurisdictions, the bankruptcy regime uses key concepts such as: Voluntary and involuntary bankruptcy; An independent administrator; Involvement of creditors in the administration of the bankruptcy; Restructuring and settlement; Extraterritoriality, allowing property outside China and certain foreign proceedings to…