Insolvency – and related legal matters including receivership and restructuring – may be triggered by
Pressure from creditors
Recognition with the business itself that financial performance must be addressed
Changes in business strategy which affect the viability of certain business units
The options available to your business depend on your exact situation and on your overall business strategy. Seeking expert advice early can mean a wider range of alternatives to consider.
Receivership can enable a business to keep trading while different business units are salvaged, sold or closed down. We work closely with experienced accountants and experts to assist in this process.
We have worked with overseas and mainland Chinese companies to liquidate, terminate or deregister their Hong Kong entity as part of a larger reorganisation. Cross-border restructuring is often contentious, and some larger matters have involved merging and divesting different international entities.
Contentious disputes with one party ordered to pay large sums are another major trigger for insolvency and restructuring. If the losing party is a significant player, restructuring and change of ownership may be less disruptive to the industry value chain.
Whatever path is chosen, experienced advice is essential. A primary aim is to devise a workable solution which delivers some benefit to all stakeholders. We work closely with expert and impartial financers to achieve this wherever possible and avoid litigation. When matters proceed to court, the court has considerable leeway in determining the best business plan going forward, so skilled and persuasive advisors are a key factor in success.
We have acted for companies, creditors and other stakeholders, both to negotiate win-win solutions and in litigation matters.
Our recent matters include:
Advising members on voluntary liquidation of a company
Company deregistration and restoration of previously deregistered companies
Acting for creditors in wind-up proceedings