Hong Kong Corporate Rescue Proposals: Making Secured Creditors More Secure

Hong Kong Law Journal, Vol. 28, p. 44, 1998

16 Pages Posted: 4 Feb 2010 Last revised: 12 Feb 2010

See all articles by Charles D. Booth

Charles D. Booth

Institute of Asian-Pacific Business Law, William S. Richardson School of Law, University of Hawaii at Manoa; University of Hawaii at Manoa - William S. Richardson School of Law

Date Written: 1998

Abstract

A glaring weakness in Hong Kong insolvency law has been the lack of an acceptable corporate rescue procedure. Under existing law it is difficult to reorganize or restructure a company in financial difficulty. Therefore, creditors holding fixed and/or floating charges often resort to receivership and, ultimately, unsecured creditors have little option but to petition for the liquidation of the company. From the perspectives of many of the participants, the result is often wasteful and unsatisfactory. It appears help is finally on the way. Over the past year, important developments have addressed the difficulties in rehabilitating companies in Hong Kong. Most significantly, in October 1996 the Law Reform Commission of Hong Kong published its Report on Corporate Rescue and Insolvent Trading, which proposes dramatic changes to facilitate the rescue of financially troubled companies in Hong Kong. It is anticipated that a bill will be gazetted in 1998. This article discusses the proposed changes to Hong Kong law in the Report on Corporate Rescue.

Suggested Citation

Booth, Charles D., Hong Kong Corporate Rescue Proposals: Making Secured Creditors More Secure (1998). Hong Kong Law Journal, Vol. 28, p. 44, 1998, Available at SSRN: https://ssrn.com/abstract=1547482

Charles D. Booth (Contact Author)

Institute of Asian-Pacific Business Law, William S. Richardson School of Law, University of Hawaii at Manoa ( email )

University of Hawai'i at Manoa
2515 Dole Street
Honolulu, HI 96822-2328
United States

University of Hawaii at Manoa - William S. Richardson School of Law ( email )

2515 Dole Street
Honolulu, HI 96822-2350
United States

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