Offshore Litigation

Blog

Offshore Litigation

Contributors

Jonathan Addo
Jonathan Addo
  • Jonathan Addo

  • Partner
  • British Virgin Islands
Jeremy Child
Jeremy Child
  • Jeremy Child

  • Partner
  • London
Stuart Cullen
Stuart Cullen
  • Stuart Cullen

  • Partner
  • British Virgin Islands
Julie Engwirda
Julie Engwirda
  • Julie Engwirda

  • Partner
  • Hong Kong
Peter Ferrer
Peter Ferrer
  • Peter Ferrer

  • Partner
  • British Virgin Islands
Claire Goldstein
Claire Goldstein
  • Claire Goldstein

  • Partner
  • British Virgin Islands
Hazel-Ann Hannaway
Hazel-Ann Hannaway
  • Hazel-Ann Hannaway

  • Partner
  • British Virgin Islands
Nick Hoffman
Nick Hoffman
  • Nick Hoffman

  • Partner
  • Cayman Islands
Andrew Johnstone
Andrew Johnstone
  • Andrew Johnstone

  • Partner
  • Hong Kong
Paula Kay
Paula Kay
  • Paula Kay

  • Partner
  • Hong Kong
Phillip Kite
Phillip Kite
  • Phillip Kite

  • Partner
  • London
Vicky Lord
Vicky Lord
  • Vicky Lord

  • Partner
  • Shanghai
Paul Madden
Paul Madden
  • Paul Madden

  • Partner
  • Cayman Islands
Henry Mander
Henry Mander
  • Henry Mander

  • Partner
  • Cayman Islands
Ian Mann
Ian Mann
  • Ian Mann

  • Partner
  • Hong Kong
William Peake
William Peake
  • William Peake

  • Partner
  • London
Lorinda Peasland
Lorinda Peasland
  • Lorinda Peasland

  • Consultant
  • Hong Kong
Chai Ridgers
Chai Ridgers
  • Chai Ridgers

  • Partner
  • Hong Kong
Nicola Roberts
Nicola Roberts
  • Nicola Roberts

  • Partner
  • Hong Kong
  • Singapore
Paul Smith
Paul Smith
  • Paul Smith

  • Partner
  • Cayman Islands
Andrew Thorp
Andrew Thorp
  • Andrew Thorp

  • Partner
  • British Virgin Islands
Jessica Williams
Jessica Williams
  • Jessica Williams

  • Partner
  • Cayman Islands
Jayson Wood
Jayson Wood
  • Jayson Wood

  • Partner
  • Cayman Islands

Cayman Islands Court facilitates restructuring opportunity for company facing an imminent Hong Kong insolvency winding up order

In Sun Cheong Creative Development Holdings, the Cayman Islands Court appointed "light touch" restructuring provisional liquidators to the company despite there being competing winding up proceedings against the company in Hong Kong.  

The company was a Cayman Islands incorporated company listed on the Hong Kong Stock Exchange that was the holding company of a group operating in the PRC. A creditor of the company had commenced winding up proceedings in Hong Kong and, as the debt was not disputed by the company, the petitioning creditor would ordinarily be entitled to a winding up order. An order for the winding up of the company appeared imminent at the time that the company applied to the Cayman Islands Court for the appointment of provisional liquidators so it could attempt a restructure of its debts.

The Court confirmed that, in considering whether the Cayman Islands or Hong Kong was the more appropriate jurisdiction to assume the role of supervising the primary insolvency proceeding, the starting position is that the place of incorporation will be the more appropriate: this is typically the jurisdiction that the company’s stakeholders legitimately expect to govern the company’s internal affairs. A foreign jurisdiction may be more appropriate where there is a particularly strong nexus between that jurisdiction and the company. 

Cayman Islands Court facilitates restructuring opportunity for company facing an imminent Hong Kong insolvency winding up order

Leave A Comment