• Home
  • Insights
  • Cross-border insolvency - Hong Kong Court confirms common law recognition and assistance does not extend to solvent liquidations

13 Jul 2022

Cross-border insolvency - Hong Kong Court confirms common law recognition and assistance does not extend to solvent liquidations

Linkedin

Seahawk China Dynamic Fund [2022] HKCFI 1994 (date of reasons for decision: 4 July 2022)

In the recent case of Seahawk China Dynamic Fund (In provisional liquidation in the Cayman Islands) [2022] HKCFI 1994, the Hong Kong Court made a declaratory order confirming that the joint provisional liquidators appointed by the Grand Court of the Cayman Islands ("JPLs") of a solvent entity Seahawk China Dynamic Fund (incorporated in the Cayman Islands) ("Seahawk") have the powers to take control of assets in Hong Kong. The decision helpfully clarified that (i) the common law power to recognise and assist foreign officeholders does not extend to solvent liquidations and the COMI test has no relevance, and (ii) the conflict of laws principles apply to the solvent liquidations.

Click here to read more.

Linkedin

KEY CONTACT

Karis Yip

Karis Yip
Managing associate

T:  +852 2533 2703 M:  Email Karis | Vcard Office:  Hong Kong