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China

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In brief On 14 May 2021, the Supreme Peopleā€™s Court (SPC) and the Hong Kong government agreed a framework (ā€œFrameworkā€) 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 Peopleā€™s 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…