Business Restructuring and Insolvency 2020 Year in Review: Key insolvency decisions in HK and PRC

2020 was a groundbreaking year with significant developments in court-led corporate rescue and the prospect finally of insolvency law reform in Hong Kong. The groundwork was laid for reciprocity and recognition between Hong Kong and the mainland through a series of innovative court decisions. Banks relying on 'hybrid' jurisdiction clauses in their finance agreements took a knock when a Hong Kong court rejected enforcement of a judgment debt in the mainland. Faring better, though, were holders of offshore debt from Chinese issuers when a Shanghai court ruled that "keepwell" agreements may be enforceable under the PRC Enterprise Bankruptcy Law. Our review of 2020 brings you right up-to-date with the latest developments in restructuring and insolvency law in Hong Kong and the mainland.