Key takeaways: Monetizing distressed assets in Hong Kong

In line with the INSOL international Singapore seminar, during the Singapore Convention Week 2024, Withers hosted a session titled "Blueprint to Monetization of Distressed Assets in Hong Kong".

The discussion, led by Justin Yip (Singapore), Gary Leung (Hong Kong), and Lam Zhen Yu (Singapore), provided valuable insights for restructuring and insolvency practitioners.

Key insights from the discussion:

• Recent restructuring and insolvency developments in Hong Kong: We explored significant changes in Hong Kong's legal landscape that impact asset recovery actions against debtors, highlighting the evolving dynamics practitioners must navigate. For example, the use and enforceability of keepwell deeds, the implication of recognizing cryptocurrencies in insolvency context and the liquidation of China Evergrande.  

• Strategies in cross-border asset enforcement: Our experts outlined innovative strategies to maximize value from distressed assets, with a focus on cross-border considerations. For example, implementing insolvency strategies, worldwide asset freezes and receiverships.

• Mutual recognition and assistance mechanisms: The discussion covered the growing use of mutual recognition and assistance mechanisms between Hong Kong and Mainland China, specifically for judgments and appointments of administrators/liquidators.
• Context and future outlook: The event also touched on the impact of anticipated interest rate cuts, recently hinted at by US Federal Reserve Chair Jerome Powell, which could create more favorable conditions in both Singapore and Hong Kong for raising capital, debt restructuring, and asset realization.

If you need assistance with cross-border asset recovery or restructuring between Singapore and Hong Kong, please get in touch with our team using the contacts below.