Insolvency in China and Hong Kong: a practitioner's perspective
Gespeichert in:
| 1. Verfasser: | |
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| Format: | Buch |
| Sprache: | English Chinese |
| Veröffentlicht: |
Hong Kong [u.a.]
Sweet & Maxwell Asia
2005
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| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XCVI, 1086 S. graph. Darst. |
| ISBN: | 9626612746 |
Internformat
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| 044 | |a cc |c CN | ||
| 049 | |a DE-M382 | ||
| 100 | 1 | |a Tang, Alan |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Insolvency in China and Hong Kong |b a practitioner's perspective |c by Alan Tang |
| 264 | 1 | |a Hong Kong [u.a.] |b Sweet & Maxwell Asia |c 2005 | |
| 300 | |a XCVI, 1086 S. |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 546 | |a Teilw. in chinesischer Schrift | ||
| 856 | 4 | 2 | |m SWB Datenaustausch |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014984144&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
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| _version_ | 1804135638936584192 |
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| adam_text | TABLE OF CONTENTS
PAGE
FOREWORD BY MR CAO SI YUAN VII
FOREWORD BY MR EAMONN O CONNELL IX
FOREWORD BY DR LI SHUGUANG XI
PREFACE XV
ABOUT THE AUTHOR XIX
TABLE OF CASES XLIII
TABLE OF LEGISLATION XLVII
CHAPTER ONE - PUTTING CHINESE INSOLVENCY IN CONTEXT
PARA
INSOLVENCY IN CHINESE HISTORY
CIVILISATION AND CULTURE
CHINESE ECONOMIC HISTORY
TANG LEU SAW YEE (THE TANG CODE)
THE YUAN LAWS
TA TSING LEU LEE (THE QING CODE) (XWWM)
ARTICLE 149
COMMON FEATURES OF ANCIENT CHINESE LAWS
THE INSOLVENCY LAWS
BANKRUPTCY IN CHINA
THE QING LAW
BANKRUPTCY FRAUD
THE KUOMINTANG LAW
THE REPUBLIC OF CHINA BANKRUPTCY LAW
THE PEOPLE S REPUBLIC OF CHINA BANKRUPTCY LAW
INSOLVENCY: CHINESE VERSUS WESTERN
ORIGIN OF BANKRUPTCY LAWS
BABYLONIC AND ROMAN LAW
BABYLON
ROME
LAWS OF WESTERN COUNTRIES
ITALY
FRANCE
GERMANY
ENGLAND
USA
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
TABLE OF CONTENTS
DEVELOPMENT OF INSOLVENCY LAW
COMPARES
TNE
D
EVE
LP
MENT
F INSOLVENCY LAWS
INSOLVENCY HISTORY AND THE LEGAL SYSTEM OF
HONG KONG
BRIEF HISTORY OF HONG KONG
SOURCES OF LAW IN HONG KONG
THE BASIC LAW
COMMON LAW AND THE RULES OF EQUITY
STATUTE LAW
CHINESE CUSTOMARY LAW
DEVELOPMENT OF INSOLVENCY LEGISLATURE
COMPANIES ORDINANCE AND WINDING-UP RULES
LEGISLATIONS CONCERNING CORPORATE INSOLVENCY
HISTORY AND DEVELOPMENT OF INSOLVENCY LEGISLATION
IN HONG KONG
IMPLEMENTATION OF INSOLVENCY LAW THROUGH COURT SYSTEM
COURT SYSTEM IN HONG KONG
COURT OF FINAL APPEAL
THE HIGH COURT
COURT OF APPEAL
COURT OF FIRST INSTANCE
DISTRICT COURT
MAGISTRACIES
SMALL CLAIMS TRIBUNAL
LANDS TRIBUNAL
LABOUR TRIBUNAL
LEGAL PROCEEDINGS
COMMENCEMENT OF CRIMINAL PROCEEDINGS
COMMENCEMENT OF CIVIL PROCEEDINGS
PLEADINGS
DISCOVERY OF DOCUMENTS
TRIAL
TYPES OF HEARING
COSTS OF THE PROCEEDINGS
SECURITY FOR COSTS
PERSONAL LIABILITY OF SOLICITOR AND LIQUIDATOR FOR COSTS
INSOLVENCY PROCEEDINGS
WINDING UP A COMPANY
ARRANGEMENT AND RECONSTRUCTION
1.23
1.24
1.25
1.26
1.27
1.28
1.29
1.30
1.31
1.32
1.32
1.33
1.34
1.35
1.36
1.36
1.37
1.38
1.39
1.40
1.41
1.42
1.43
1.44
1.45
1.45
1.46
1.47
1.48
1.49
1.50
1.51
1.52
1.53
1.54
1.54
1.55
TABLE OF CONTENTS
CHAPTER TWO - RESTRUCTURING IN HONG KONG
THE HONG KONG ECONOMY SINCE THE ASIAN
FINANCIAL CRISIS 2.01
RESTRUCTURING, REORGANISATION AND RESCHEDULING 2.02
WHAT DO WE MEAN? 2.02
RESTRUCTURING 2.03
REORGANISATION 2.04
RESCHEDULING 2.05
RECONSTRUCTION 2.06
WHAT DO WE SEE? 2.07
RESTRUCTURING ATTEMPTS OF THE SIU FUNG CERAMICS GROUP 2.08
LESSONS LEARNED 2.09
THE WIDER ASIAN EXPERIENCE 2.10
WHAT DO WE WANT? 2.11
COMPOSITION AND SCHEME OF ARRANGEMENT 2.12
LEGAL FRAMEWORK 2.12
KEY PROCEDURES 2.13
REASONS FOR A SCHEME 2.14
RESTRUCTURING THROUGH PROVISIONAL LIQUIDATORS 2.15
USE OF SCHEMES IN NON-RESTRUCTURING
SITUATIONS - THE BCCHK EXPERIENCE 2.16
THE FIRST SCHEME 2.17
SECOND SCHEME 2.18
THE EARLY SUCCESSES 2.18
HUTCHISON WHAMPOA LIMITED 2.20
COMPANY BACKGROUND 2.20
REASONS FOR FAILURE 2.21
THE RESTRUCTURING 1976-1979 2.22
ISSUE OF SHARES TO HONGKONG BANK AND SUBSCRIPTION TERMS 2.22
COMPANY DOCTOR AND MERGER WITH HWD 2.23
BASIS AND KEY TERMS OF MERGER 2.24
TAKEOVER BY CHEUNG KONG (HOLDINGS) LIMITED 2.25
MAJOR DEVELOPMENTS AFTER THE RESTRUCTURING 2.26
LESSONS LEARNED 2.27
WAH KWONG SHIPPING AND INVESTMENT COMPANY (HONG KONG)
LIMITED 2.28
COMPANY BACKGROUND 2.28
FINANCIAL POSITION 2.29
90-DAY INTEREST PAYMENT PLAN 2.30
LONG-TERM RESTRUCTURING PROPOSAL 2.31
90-DAY EXTENSION OF THE IPP 2.32
DEBT RESTRUCTURING AGREEMENT ( DRA ) 2.33
TABLE OF CONTENTS
2.34
2.35
DETAIL OF DEBT AND CAPITAL RECONSTRUCTION SCHEME
RESUMPTION OF TRADING
ORIENT OVERSEAS HOLDINGS LIMITED
COMPANY BACKGROUND
FINANCIAL POSITION PRIOR TO RESTRUCTURING IN 1985
RESTRUCTURING IN 1985
STEERING COMMITTEE
90-DAY MORATORIUM
FINANCIAL POSITION OVER THE RESTRUCTURING PERIOD 2.42
2 43
CORPORATE REORGANISATION
CAPITAL RECONSTRUCTION
DEBT RESTRUCTURING SCHEME 246
FINANCIAL POSITION AFTER THE RESTRUCTURING 2.47
LESSONS LEARNED
WARNING SIGNS
2 49
DISSECTION OF FINANCIAL STATEMENTS 2.50
BACKGROUND OF LISTCO A AND LISTCO B 2.51
FUND RAISING ACTIVITIES
SHARE PRICE MOVEMENTS OF LISTCO A AND LISTCO B 2.53
FINANCIAL POSITION OF LISTCO A 2.54
ANALYSIS AND COMMENTS ON LISTCO A 2.55
GENERAL 2.55
EQUITY METHOD OF ACCOUNTING AND INVESTMENTS IN ASSOCIATES 2.56
TURNOVER AND GROSS MARGIN 2.57
TRADE RECEIVABLES 2.58
TRADE AND OTHER PAYABLES 2.59
PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES 2.60
INTERESTS IN AN ASSOCIATE 2.61
CASH 2.62
SHORT TERM BORROWINGS 2.63
PLACING OF NEW SHARES 2.64
CASH FLOW FOR SIX MONTHS TO 31 DECEMBER 2000 2.65
FINANCIAL POSITION OF LISTCO B 2.66
ANALYSIS AND COMMENTS ON LISTCO B 2.67
GENERAL 2.67
TURNOVER AND GROSS MARGIN 2.68
TRADE RECEIVABLES 2.69
INVENTORIES 2.70
TRADE AND OTHER PAYABLES 2.1
PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
{TOGETHER PREPAYMENTS ) 2.72
DUE FROM / TO LISTCO A 2.73
CASH AND SHORT-TERM BORROWINGS 2.74
TABLE OF CONTENTS
PLACING OF NEW SHARES 2.75
CASH FLOW FOR SIX MONTHS TO 31 DECEMBER 2000 2.76
KEY TO ANALYZING FINANCIAL STATEMENTS 2.77
LESSONS LEARNED 2.78
SURVEY OF LISTED COMPANIES UNDER
RESTRUCTURING FROM 1998 TO 2004 2.79
SELECTION CRITERIA 2.79
SUMMARY OF RESULTS OF THE SURVEY 2.80
CONCLUSION 2.81
THE SURVIVORS - THE LAI SUN EXPERIENCE 2.82
BACKGROUND 2.82
BACKGROUND FOR RESTRUCTURING 2.83
FINANCIAL POSITION PRIOR TO RESTRUCTURING 2.84
STEPS TAKEN TO RESTRUCTURE INDEBTEDNESS 2.85
REORGANISATION 2000 2.86
SUMMARY OF MAJOR TRANSACTIONS TO REDUCE
INDEBTEDNESS OF LSD FROM 1997 - 2004 2.87
FORMAL DEBT RESTRUCTURING PROPOSAL 2.88
HOW THE MAGIC WORKED 2.89
CROSS-HOLDING BETWEEN LSD AND ESUN 2.90
LESSON LEARNED 2.91
SALE OF THE LISTING STATUS - A UNIQUE
HONG KONG PHENOMENON 2.92
LISTED COMPANIES IN FINANCIAL DIFFICULTIES 2.92
VALUE OF LISTING SHELL 2.93
SALE BY SHAREHOLDERS 2.94
SALE BY INSOLVENCY PRACTITIONERS 2.95
OTHER ISSUES AND CONSIDERATIONS 2.96
PROVISIONAL SUPERVISION 2.97
BACKGROUND 2.97
COMPANIES (AMENDMENT) BILL 2000 AND COMPANIES
(CORPORATE RESCUE) BILL 2001 2.98
KEY PROCEDURES 2.98
COMMENCEMENT OF PROVISIONAL SUPERVISION 2.99
THE PROVISIONAL SUPERVISOR 2.100
STATEMENT OF AFFAIRS 2.101
THE MORATORIUM 2.102
TREATMENT OF OUTSTANDING WAGES AND OTHER ENTITLEMENTS 2.103
SUPER PRIORITY BORROWING 2.104
VOIDABLE TRANSACTION AND INSOLVENT TRADING 2.105
MEETING OF CREDITORS 2.106
KEY ISSUES OF CONCERN TO PRACTITIONERS 2.107
TABLE OF CONTENTS
CHAPTER THREE - RESTRUCTURING IN CHINA
CHINESE ENTERPRISE AND THE REFORM PROGRAMME 3.01
THE REHABILITATION CULTURE ^.01
PRE-1949 POLITICS AND BUSINESS DEVELOPMENT
POST-1949 POLITICS AND BUSINESS DEVELOPMENT
3
4
THE 1978 AND 1984 REFORMS
3
RECONSTRUCTION AND REHABILITATION THROUGH MERGERS
AND ACQUISITIONS
J
*
UU
ASSET DISPOSAL AND FORMS OF RESTRUCTURING 3.07
T
/ ID
PROBLEMS AND CONCERNS
DV
THE 1993 REFORM
3 09
UNIFICATION OF RMB RATES
3 L
TYPES OF ENTERPRISES 3 * * *
DOMESTIC FUNDED ENTERPRISES (P$M4KM) 3.12
STATE-OWNED ENTERPRISES (BWJKM) 3.12
COLLECTIVELY-OWNED ENTERPRISES (MMLKM) 3.13
SHARE-HOLDING COOPERATIVE ENTERPRISES {WT& NFC KM 3.14
JOINT OWNERSHIP ENTERPRISES /
JOINT-OPERATION ENTERPRISES (WMDTM) 3.15
LIMITED LIABILITY CORPORATIONS (WP&JFFFJII- W) 3.16
SHARE HOLDING ENTERPRISES / SHAREHOLDING
CORPORATION LIMITED (MFTWPG&W) 3.17
PRIVATE ENTERPRISES ($B M^KM) 3.18
ENTERPRISES WITH FUNDS FROM HONG KONG,
MACAO AND TAIWAN (M$&0&WJKM) 3.19
FOREIGN FUNDED ENTERPRISES (R*$JIFT%(JK0)
3.20
STATE-OWNED ENTERPRISE, COMMUNE AND EMPLOYEES 3.22
STATE-OWNED ENTERPRISES AND THE LOCAL COMMUNE 3.22
WAGES AND WELFARE 3.23
LABOUR UNREST 3.24
SOCIAL INSURANCE AND SECURITY 3.25
THE EARLIER LAWS AND PRACTICES 3.26
PROBLEMS ENCOUNTERED 3.27
SOCIAL WELFARE AND LABOUR LEGISLATION 3.28
RETIREMENT AND PENSION INSURANCE 3.29
MEDICAL INSURANCE 3 30
UNEMPLOYMENT INSURANCE 3.31
INDUSTRIAL INJURIES INSURANCE 3.32
FUTURE DEVELOPMENT OF THE SOCIAL SECURITY AND
INSURANCE SYSTEM 3 33
SOCIAL SECURITY FUND A 34
TABLE OF CONTENTS XXVII
LEGAL AND ACCOUNTING FRAMEWORK
FOR RESTRUCTURING 3.35
LEGAL FRAMEWORK 3.35
ACCOUNTING FRAMEWORK 3.36
TYPES OF DEBT RESTRUCTURING 3.37
REPAYMENTS ARE IN CASH AT A VALUE LOWER THAN THE BOOK
VALUE OF THE DEBT 3.38
REPAYMENTS ARE IN NON-CASH ASSETS 3.39
A DEBT-EQUITY SWAP IS USED 3.40
THE DEBT CONDITIONS ARE AMENDED 3.41
DISCLOSURES 3.42
RESTRUCTURING AS A PROCESS IN BANKRUPTCY 3.43
FOREIGN INVESTMENTS AND FOREIGN INTERESTS IN RESTRUCTURING 3.44
INVESTMENTS BY FOREIGN INVESTORS 3.44
FOUR ACQUISITION SCENARIOS 3.45
PRICE AND CAPITAL CONTRIBUTION 3.46
SHAREHOLDING AND DEBT TO EQUITY RATIOS 3.47
LIABILITIES 3.48
REPORTING REQUIREMENTS 3.49
RESTRUCTURING OF NON-PERFORMING LOANS 3.50
REASONS FOR ACCUMULATING NPLS 3.51
CHANGE OF SOES FINANCING POLICY 3.52
CHANGE IN THE NATIONAL INCOME DISTRIBUTION STRUCTURE 3.53
DETERIORATING PERFORMANCE OF STATE-OWNED ENTERPRISES 3.54
FINANCIAL BURDEN OF STATE-OWNED ENTERPRISES 3.55
TRIANGULAR DEBTS 3.56
BANKING SECTOR AND NON-PERFORMING LOANS 3.57
EFFECTS OF NPL 3.58
UNSTABLE BANKING SYSTEM AND PREVALENCE OF TRIANGULAR DEBT 3.58
LOAN CLASSIFICATION BY CHINESE BANKS 3.59
ASSET MANAGEMENT COMPANIES 3.60
LEGAL FRAMEWORK OF ESTABLISHING AMC 3.61
THE FIRST AMC: CINDA ASSET MANAGEMENT 3.62
A DILEMMA: QUICK CASH OR HIGH RECOVERY 3.63
ROLE OF THE OVERSEAS INVESTORS 3.64
RESULTS 3.65
REFORM OF STATE-OWNED BANKS 3.66
OTHER NPL DISPOSAL MECHANISMS 3.67
AUCTIONING OFF SOES 3.68
DEBT-EQUITY SWAP 3.69
SECURITISATION 3.70
THE CHANGCHUN APPROACH 3.71
OTHER ASIAN EXPERIENCES 3 72
XXVIII TABLE OF CONTENTS
THE RESTRUCTURING OF ITICS
3
73
WHAT ARE ITICS
3 ?4
EARLY TRUST COMPANIES
MODERN TRUSTS - ITICS
3/75
PBOC TAKING THE LEAD
376
THE FIVE REFORMS OF TICS
3 77
FIRST REFORM IN 1982
3J7
SECOND REFORM IN 1985
3
-
78
THIRD REFORM IN 1988
3
-
79
FOURTH REFORM IN 1993
3
-
80
FIFTH REFORM IN 1999 3.81
LEGAL AND REGULATORY FRAMEWORK 3.82
BEFORE THE FIFTH REFORM 3.83
AFTER THE FIFTH REFORM 3.84
LIST OF RELEVANT LAWS PROMULGATED SINCE THE 1980S 3.85
NATURE AND OPERATION OF TICS 3.86
ITICS AS WINDOW COMPANIES 3.87
IMPACT OF ASIAN FINANCIAL CRISIS ON ITICS 3.88
THE FALL OF ITICS 3.89
THE RISE OF ITICS 3.90
ENACTMENT OF NEW LEGISLATION 3.91
TRUST LAW OF THE PEOPLE S REPUBLIC OF CHINA 3.92
MEASURES ON MANAGING TRUST AND INVESTMENT COMPANIES
(MFT&M&WWMMM 3.93
PROVISIONAL MEASURES ON MANAGING TRUST FUNDS IN TRUST
AND INVESTMENT COMPANIES
(MMMMMMMWMM) 3.94
ITICS WITH A NEW MISSION 3.95
CONCLUSION 3.96
THE GDE RESTRUCTURING 3.97
BACKGROUND AND WORKINGS OF GDE 3.97
THE CRISIS, NEGOTIATIONS AND SOLUTION 3.98
CRISIS 3.9G
NEGOTIATIONS 3.99
THE FINAL DEBT RESTRUCTURING AGREEMENT 3.100
DISTRIBUTION OF DEBTS PARTICIPATING IN THE RESTRUCTURING 3.101
FINANCIAL ASSETS RECOVERED BY ALL THE CREDITORS 3.102
INGREDIENTS OF SUCCESS 3 103
GOALS OF THE NEW GDE GROUP 3 104
WORKING RULES FOR THE NEW CDH GROUP 3 105
LESSONS LEARNED 3 106
TABLE OF CONTENTS
CHAPTER FOUR - CORPORATE INSOLVENCY IN HONG KONG
THE CAREY STREET OF HONG KONG 4.01
PRE-1980 INSOLVENCIES 4.01
INSOLVENCY STATISTICS 4.02
PRIVATE LIQUIDATORS 4.03
MAJOR COMPULSORY LIQUIDATIONS 4.04
ESTIMATED POSITIONS OF ASSETS AND LIABILITIES 4.05
COMPULSORY AND VOLUNTARY LIQUIDATIONS 4.06
MING TAK BANK ( MING TAK ) (WLG&ST) 4.07
BACKGROUND 4.08
ADMINISTRATION OF BANKRUPTCY 4.09
COMMITTEE OF INSPECTION 4.10
CONDUCT OF THE BANKRUPT 4.11
CANTON TRUST AND COMMERCIAL BANK LIMITED ( CANTON TRUST )
LESSONS LEARNED 4.13
HONG KONG TAKEN BY SURPRISE 4.14
THE FIRST PLANELOAD OF LIQUIDATORS 4.14
IAN GRANT ROBINSON 4.15
BIRTH OF A NEW PROFESSION 4.17
FALL OF GAMMON HOUSE (THE CARRIAN GROUP) 4.18
BACKGROUND 4.19
GEORGE TAN AND THE ESTABLISHMENT OF CARRIAN 4.20
GAMMON HOUSE, MAI HON AND OTHER EXPANSIONS 4.21
FAILURE 4.22
FINANCIAL POSITIONS 4.23
ATTEMPTED RESTRUCTURING 4.24
COLLAPSE 4.25
LIQUIDATION AND THE AMOUNT OF DEBTS 4.26
INVESTIGATION 4.27
CLAIMS AGAINST PROFESSIONALS 4.28
LESSONS LEARNED 4.29
THE BANKING CRISIS 4.30
THE COLLAPSED BANK THAT PROVED SOLVENT 4.31
BACKGROUND 4.31
CLOSURE 4.32
PROPOSED RESCUE BY THE HONG KONG CHINESE BANK 4.33
THE SOLVENT BANK THAT WAS WOUND UP 4.34
HAPPY ENDING 4.35
PAYMENTS 4.35
TABLE OF CONTENTS
SPECIAL FEATURES AND ISSUES OF BCCHK
TRADE FINANCE
PIPELINE TRANSACTIONS
COUNTRY-WISE AND BANKWISE NET POSITION
4
-
3
EXPOSURE TO THE BCCI GROUP *
JY
THE RELEVANT DATE
APPLICATION OF SET-OFF PRINCIPLES TO BCCHK
4
- *
Z
MS FASHION LIMITED
4 43
THE YOUNG BROTHERS
444
TAMWINGCHUEN
445
LESSONS LEARNED
4
-
4
CLIPPING HONG KONG S INTERNATIONAL WINGS 4.47
LIQUIDATION OF THE PEREGRINE GROUP 4.48
BACKGROUND 4.48
BUSINESS AND FINANCIAL POSITION OF THE GROUP 4.49
CAUSES OF FAILURE 4.50
LIQUIDATION OFPIHL 4.51
LIQUIDATION OFPDL 4.52
LIQUIDATION OFPFIL 4.53
SPECIAL FEATURES OF THE PEREGRINE LIQUIDATION 4.54
BANQUE NATIONALE DE PARIS AND KWONG SANG HONG 4.55
CLAIM FROM COMMERCZBANK 4.56
LIQUIDATION FEES 4.57
GOVERNMENT INSPECTION 4.58
ISDA RULING 4.59
DIRECTOR S DISQUALIFICATION 4.60
PROTOCOL 4.61
LESSONS LEARNED 4.63
AKAI HOLDINGS LIMITED 4.64
INTRODUCTION 4.64
AKAI S SIMPLIFIED GROUP STRUCTURE AT 1999 (SEE CHART 4.4) 4.65
HISTORY 4.66
RAPID EXPANSION 4.67
COLLAPSE 4.68
AKAI IN LIQUIDATION 4,69
THE RESTRUCTURING - SALE OF LISTING SHELL VIA SCHEME 4.70
FINANCIAL POSITIONS PRIOR TO THE RESTRUCTURING 4.71
LESSONS LEARNED 4.72
THE LEGAL FRAMEWORK 4.73
COMPANIES ORDINANCE AND WINDING-UP RULES 4.73
LEGISLATIONS CONCERNING CORPORATE INSOLVENCY A.1A
BRIEF HISTORY AND DEVELOPMENT OF BANKRUPTCY LEGISLATION
IN HONG KONG 4 75
TABLE OF CONTENTS
TYPES OF CORPORATE INSOLVENCIES
INSOLVENCY PRACTITIONERS
INSOLVENCY PROCEDURES
CONTRACTUAL ARRANGEMENT
SCHEME OF ARRANGEMENT
CREDITORS VOLUNTARY LIQUIDATION
SECTION 228A LIQUIDATION
COMPULSORY LIQUIDATION
COURT LIQUIDATION UNDER A REGULATING ORDER
COURT LIQUIDATION BY WAY OF SUMMARY PROCEDURE
LIQUIDATION OF UNREGISTERED OR OVERSEAS COMPANIES
RECEIVERSHIP
OTHER ISSUES CONCERNING CORPORATE INSOLVENCY
PRIORITY OF CLAIMS
STATEMENT OF AFFAIRS
INSOLVENCY OFFENCES
INVESTIGATION AND REPORT ON CONDUCT OF DIRECTORS
QUESTION MANAGEMENT
RECORDS
VALIDITY OF CHARGES
COMPARISON OF ASSETS WITH LAST BALANCE SHEET
TRADING LOSSES
TRANSACTIONS WITH ASSOCIATED COMPANIES OR CONNECTED PERSONS
STATUTORY BOOKS
DISSOLUTION OF COMPANIES
DISPOSITION OF SOLVENT DEFUNCT COMPANIES
MEMBERS VOLUNTARY LIQUIDATION
STRIKING OFF AND DEREGISTRATION OF DEFUNCT COMPANY
REINSTATEMENT OF DEREGISTERED COMPANIES
PROPOSED REFORMS TO INSOLVENCY LAW
EMPLOYEE ISSUES
TO PAY OR NOT TO PAY
WAGES
PREFERENTIAL CLAIM ON WAGES
SEVERANCE PAYMENT
PREFERENTIAL CLAIM FOR SEVERANCE PAYMENT
WAGES IN LIEU OF NOTICE
PREFERENTIAL CLAIM FOR PAYMENT IN LIEU OF NOTICE
ACCRUED HOLIDAY AND ANNUAL LEAVE REMUNERATION
PREFERENTIAL CLAIM ON ACCRUED HOLIDAY REMUNERATION
MATERNITY LEAVE
DATE OF TERMINATION
4.76
4.77
4.78
4.78
4.79
4.80
4.81
4.82
4.83
4.84
4.85
4.86
4.87
4.87
4.88
4.89
4.90
4.91
4.92
4.93
4.94
4.95
4.96
4.97
4.103
4.104
4.105
4.106
4.107
4.108
4.109
4.109
4.110
4.111
4.112
4.113
4.114
4.115
4.116
4.117
4.118
4.119
XXXI
XXXII TABLE OF CONTENTS
THE PROTECTION OF WAGES ON INSOLVENCY FUND 4.120
THE PROTECTION OF WAGES ON INSOLVENCY ORDINANCE (PWIO) 4.120
EX-GRATIA PAYMENT UNDER THE PWIO 4.121
EX-GRATIA PAYMENT 4.122
FEES AND REMUNERATION 4.123
WHAT THE BOOK SAYS
4123
THE PRACTICE PRIOR TO MAXWELL AND PEREGRINE 4.124
THE PRACTICE POST MAXWELL AND PEREGRINE 4.125
THE PROCEDURAL GUIDE 4.126
IN RETROSPECT 4.127
CHAPTER FIVE - ENTERPRISE BANKRUPTCY IN CHINA
THE LONG ROAD TO A HUMBLE START 5.01
THE START 5.01
INTRODUCTION 5.01
BANKRUPTCY REGULATIONS 5.02
1986 BANKRUPTCY LAW 5.03
PUBLIC OPINION 5.04
REVISING THE BANKRUPTCY LAW 5.05
THE UNCERTAINTIES 5.06
MAIN DIFFICULTIES 5,06
CONCEPTUAL UNCERTAINTY 5.07
OVERVIEW 5.07
ROLE UNCERTAINTY 5.08
WHAT SHOULD THE BANKRUPTCY LAW DO ? 5.08
LEGAL UNCERTAINTY 5 09
JUDICIAL UNCERTAINTY 5 JQ
CORRUPTION 5 ^Q
REGULATION ATTEMPTS 5
THE BARRIERS - 17
INTRODUCTION R ^
IDEOLOGICAL DIFFICULTIES 5 J2
DEFINING BANKRUPTCY
5 J3
MULTIPLICITY OF DISCIPLINES AND LACK OF CORRESPONDING LEGISLATION S!L4
OVERVIEW .
14
INADEQUATE ACCOUNTING AND VALUATION SYSTEM 5 15
CURRENT SITUATION
5 L5
LACK OF RELIABLE STATISTICS
5
L7
OVERVIEW -
IN CAO SI YUAN S WORDS
5I
G
INTRODUCTION , *
CAO S VIEW ON BANKRUPTCY
5
19
TABLE OF CONTENTS XXXIII
THE LEGAL FRAMEWORK
THE RELEVANT LEGISLATION
NATIONAL LEGISLATION
REGIONAL LEGISLATION
RELEVANCE OF LEGISLATION
THE 1986 ENTERPRISE BANKRUPTCY LAW (TRIAL IMPLEMENTATION)
CONTENTS
PREAMBLE AND EFFECTIVE DATE
ELIGIBILITY FOR BANKRUPTCY
OVERVIEW
THE 1991 SUPREME COURT S JUDICIAL INTERPRETATION
CONTENTS
AIMS OF THE 1991 OPINION
CHAPTER 19 OF THE CIVIL PROCEDURE LAW
OVERVIEW
THE 2002 SUPREME COURT S JUDICIAL INTERPRETATION
CONTENT
EFFECT
THE 2004 DRAFT ENTERPRISE BANKRUPTCY LAW
REDRAFTING OF THE BANKRUPTCY LEGISLATION
PREAMBLE AND APPLICATION
ELIGIBILITY FOR BANKRUPTCY
KEY PROCEDURES
INTRODUCTION
INABILITY TO PAY DEBT
JURISDICTION AND DEFINITION
GROUND FOR APPLICATION FOR BANKRUPTCY
APPLICATION FOR BANKRUPTCY
PROCEDURE
REORGANISATION (INTRODUCED UNDER THE 2004 DRAFT
ENTERPRISE BANKRUPTCY LAW)
PROCEDURE
RECONCILIATION
PROCEDURE
CREDITORS MEETING
COMPOSITION AND ITS FUNCTIONS
CREDITORS COMMITTEE (INTRODUCED UNDER THE 2004 DRAFT ENTERPRISE
BANKRUPTCY LAW)
COMPOSITION AND ITS FUNCTIONS
BANKRUPTCY PROCEEDINGS
DECLARATION FOR BANKRUPTCY
BANKRUPTCY COMMITTEE AND ADMINISTRATOR
5.20
5.20
5.20
5.21
5.22
5.23
5.23
5.24
5.25
5.25
5.26
5.26
5.27
5.28
5.28
5.29
5.29
5.30
5.31
5.31
5.32
5.33
5.34
5.35
5.35
5.36
5.37
5.37
5.38
5.38
5.39
5.39
5.40
5.40
5.41
5.41
5.42
5.42
5.43
TABLE OF CONTENTS
DEBTS AND ASSETS IN THE BANKRUPTCY AND THEIR RECOVERY,
ADMINISTRATION AND REALISATION
5 44
BANKRUPTCY EXPENSES AND DISTRIBUTION TO CREDITORS 5.45
TERMINATION OF BANKRUPTCY PROCEDURES
5
.46
SUMMARY
CHARTS FOR KEY PROCEDURES
OTHER LIQUIDATION PROCEDURES
5
-48
INTRODUCTION
5
-48
COMMENCEMENT OF LIQUIDATION 5.49
LIQUIDATION CIRCUMSTANCES 5.49
LIQUIDATION COMMITTEE 5.50
FORMATION 5.50
PROCEDURE 5-51
VALUATION OF STATE-OWNED ASSETS 5.52
SAAB AND SASAC 5.52
THE OLD SYSTEM 5.53
MAIN FEATURES 5.53
THE NEW REGIME 5.54
THE VERIFICATION MEASURES 5.55
THE FILING MEASURES 5.56
QUALIFICATION OF VALUATION AGENCIES 5.57
OVERVIEW 5.57
ADMINISTRATION OF TRANSFER OF STATE-OWNED INTEREST IN ENTERPRISES 5.58
NEWLY ISSUED MEASURES 5.58
THE EXPERIENCE SO FAR 5.59
THE CASE NUMBERS 5.59
INTRODUCTION 5.59
POLITICAL AND ECONOMIC CLIMATE 5.60
THE ISSUES AND INITIAL PROBLEMS 5.61
PRACTICAL CONSIDERATIONS 5.61
STATE-OWNED ENTERPRISES (SOES) 5.62
BANKRUPTCY AND SOES 5.62
EXAMPLE 5.63
LABOUR-RELATED ISSUES 5.64
PROTECTING THE WORKERS LIVELIHOOD 5.64
SOCIAL EFFECTS 5.65
OTHER EFFECTS 5.66
BAD DEBT PROVISIONING 5.67
BANK LENDING 5.67
COMMERCIAL BANKING LAW 5.68
TRIANGULAR DEBTS 5 69
DEFINITION 559
EFFECTS 57O
TABLE OF CONTENTS
LACK OF FRESH CAPITAL FUNDING 5.71
INTRODUCTION 5.71
UTILIZATION OF FOREIGN CAPITAL 5.72
LENDING CONTROL AND BANKING SYSTEM 5.73
OVERVIEW 5.73
LENDER S SECURITY AND PRIORITY OF CLAIMS 5.74
OVERVIEW 5.1 A
INVESTIGATIVE POWERS AND BANKRUPTCY OFFENCES 5.75
INTRODUCTION 5.75
ABUSE OF BANKRUPTCY PROCEDURES 5.76
OVERVIEW 5.76
LACK OF EXPERIENCED INSOLVENCY PRACTITIONERS 5.77
EFFECT ON DEVELOPMENT OF BANKRUPTCY LAW 5.77
INTERNATIONAL INFLUENCES 5.78
OVERVIEW 5.78
STATE INTERIM MEASURES 5.79
ADMINISTRATIVE DIRECTIVES 5.79
CSOP RESULTS 5.80
NATIONAL BANKRUPTCY LIAISON GROUP
NEED FOR REGULATION 5.81
DUTIES OF THE NBL GROUP 5.82
SELECTED CASES 5.83
CHONGQING KNITTING (HOLDINGS) FACTORY 5.83
BACKGROUND 5.83
SOLUTION 5.84
DISCUSSION 5.85
HARBIN EMPORIUM WHOLESALERS 5.86
SUMMARY 5.86
LESSONS LEARNED 5.87
SHANXI YUNCHENG DETERGENT FACTORY 5.88
BACKGROUND 5.88
SOLUTION 5.89
DISCUSSION 5.90
LESSONS LEARNED 5.91
LIQUIDATION AND BANKRUPTCY PROCEDURES
FOR FOREIGN INVESTMENT ENTERPRISES 5.92
LIQUIDATION VERSUS BANKRUPTCY 5.92
JOINT VENTURES 5.92
THE FIE LIQUIDATION PROCEDURES 5.93
1996 PROCEDURES 5.93
APPLICATION 5.93
OVERVIEW 5.94
XXX I TABLE OF CONTENTS
5 95
COMMENCEMENT OF LIQUIDATION
CIRCUMSTANCES
TYPES OF LIQUIDATION
INTRODUCTION
ORDINARY LIQUIDATION
LIQUIDATION COMMITTEE
CREDITORS
5
98
C GO
SPECIAL LIQUIDATION
LIQUIDATION COMMITTEE
5
CREDITORS
5100
CLOSING (FOR BOTH ORDINARY AND SPECIAL LIQUIDATION) 5.101
OVERVIEW OF PROCESS 5.101
THE FIE BANKRUPTCY PROCEDURES
5
* *
2
2002 RULES
5
-
102
GITIC
5103
PRIOR TO GITIC
5103
BACKGROUND 5.103
CLOSURE AND COLLAPSE 5.104
STRUCTURE 5.104
REVIEW 5.105
CLOSURE 5.106
LENDERS 5.107
OVERSEAS CREDITORS 5.108
CORPORATE CREDITORS 5.109
DISCUSSION 5.110
1986 BANKRUPTCY LAW UNDER THE MICROSCOPE 5.111
APPLICABILITY, FLEXIBILITY AND INADEQUACY OF THE PRC
BANKRUPTCY REGIME 5.111
THE LEGAL BASIS OF BANKRUPTCY 5.112
CREDITORS MEETING AND CREDITORS COMMITTEE 5.113
LIQUIDATION COMMITTEE 5.113
CHAIRMEN S COMMITTEE 5.114
FIVE PRINCIPLES 5.115
WORKING RULES 5.116
CREDITOR PROFILE 5.117
FINANCIAL POSITION 5.118
STATEMENT OF AFFAIRS 5.118
BOOK VALUE 5.119
ANNUAL REPORT 5.120
SECOND REPORT 5 121
THIRD REPORT AND FIFTH AND FINAL REPORT 5.122
TABLE OF CONTENTS XXXVII
EMPLOYEES
WORKING RULES
DEALING WITH ASSETS
ASSET OPINION
DISCUSSION
ECONOMIC CONTRACT LAW
LOANS
LOAN AGREEMENT
ENFORCEMENT
NOTICE TO RETURN ASSETS AND DEBTS
APPEALS
APPEAL PROCEDURES
PROBLEMS
REVOLT OF SUBSIDIARIES
CLAIMS MADE
DISCUSSION
THE 63-STOREYED GUANGDONG INTERNATIONAL HOTEL
BACKGROUND
APPLICABLE PRINCIPLES
OWNERSHIP OF ASSETS
DISCUSSION
GOVERNMENT GUARANTEE CLAIMS
DEALING WITH LIABILITIES
THE ADJUDICATION PRINCIPLES
INTRODUCTION
1. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO COMMERCIAL LOAN AGREEMENT
2. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO INTER FINANCIAL INSTITUTION LENDING
3. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO TRUST DEPOSITS AND DESIGNATED
INVESTMENT OR LENDING
4. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS IN
RELATION TO GUARANTEES ISSUES
5. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS IN
RELATION TO LETTERS OF COMFORT ISSUES
GUARANTEE CLAIMS
REPORTED CLAIMS
ENFORCEABILITY
REGULATORY INSTRUMENTS
DISCUSSION
LETTERS OF COMFORT
CLAIMS
5.124
5.124
5.125
5.125
5.126
5.127
5.128
5.128
5.129
5.130
5.130
5.131
5.132
5.133
5.133
5.134
5.135
5.135
5.136
5.137
5.138
5.139
5.140
5.140
5.140
5.141
5.142
5.143
5.144
5.145
5.146
5.146
5.147
5.148
5.149
5.150
5.150
XXVVIII TABLE OF CONTENTS
CLAIM OF HK$2.6 BILLION FROM GUANG XIN ENTERPRISE LIMITED 5.151
INDEMNITY FROM GIT1C
5151
FROM INDEMNITY TO LETTER OF COMFORT
5
* *
52
CLAIMS OF NATURAL PERSONS AS DEPOSITORS ALREADY PAID BY THE
GUANGDONG PROVINCIAL GOVERNMENT 5.153
OVERVIEW
JLJJ
SET-OFF
5154
CONCEPT
5154
INVESTIGATIONS
5155
WHAT THE LIQUIDATION COMMITTEE SET OUT TO DO 5.155
WHAT WAS DONE AND WHAT HAPPENED 5.156
DIVIDENDS AND DEREGISTRATION 5.157
DIVIDEND PAYMENTS 5.157
PREMATURE CLOSING OF BANKRUPTCY PROCEEDINGS 5.158
MAJOR OUTSTANDING UNREALISED ASSETS 5.159
POST-CLOSURE BANKRUPTCY ADMINISTRATION 5.160
PROCEDURES AND ISSUES ARISING 5.161
SUPPLEMENTARY MEASURES AND REGULATIONS 5.162
RIGIDNESS AND CLOSED SHOP ADMINISTRATION 5.163
CHAIRMEN S COMMITTEE 5.164
LESSONS LEARNED AND QUESTIONS UNANSWERED 5.165
LESSONS LEARNED 5.165
QUESTIONS UNANSWERED 5.166
LESSONS LEARNED 5.167
THE NEW ENTERPRISE BANKRUPTCY LAW 5.168
NEW DRAFT BANKRUPTCY LAW 5.168
REDRAFTING OF THE BANKRUPTCY LEGISLATION 5.168
NEW FEATURES OF THE NEW DRAFT ENTERPRISE BANKRUPTCY LAW 5.169
PURPOSE OF THE LAW 5.170
BASIS AND SCOPE OF APPLICATION 5.171
CAUSES FOR BANKRUPTCY 5.172
CROSS-BORDER INSOLVENCY 5.173
CREDITORS COMMITTEE 5.174
REORGANISATION 5.175
RESETTLEMENT OF EMPLOYEES 5.176
BANKRUPTCY OFFENCES 5.177
BANKRUPTCY ADMINISTRATION 5.178
NEW OPPORTUNITIES FOR HONG KONG ACCOUNTANTS 5.179
CONCLUSION 5 180
SUMMARY OF DIFFERENCES IN THE NEW DRAFT BANKRUPTCY
LAW (2004) AND THE CURRENT LAW (1986) 5.181
TABLE OF CONTENTS
CHAPTER SIX - INTERNATIONAL ASPECTS OF PRC
ENTERPRISE BANKRUPTCY
WHO ARE YOU, MR LIQUIDATOR? 6.01
WHAT CAN YOU BRING TO ME ? 6.01
LAW ALWAYS ON MY SIDE 6.02
ENFORCEMENT OF FOREIGN JUDGMENTS - LEGAL BASIS 6.03
SERVING FOREIGN JUDICIAL DOCUMENTS AND OBTAINING EVIDENCE 6.04
ENFORCEMENT OF ARBITRATION AWARDS 6.05
WHAT IS OF CONCERN TO PRC PARTIES 6.06
RECOGNITION AND ENFORCEMENT 6.07
A PRACTICAL NOTE 6.07
WHAT IS RECOGNITION? 6.08
THREE SCENARIOS 6.09
THE EFFECTS OF FOREIGN BANKRUPTCIES 6.10
A FOREIGN LEGAL ENTITY IN BANKRUPTCY OWNING DIRECTLY TANGIBLE
OR INTANGIBLE ASSETS IN CHINA 6.11
A FOREIGN LEGAL ENTITY IN BANKRUPTCY SEEKING TO RECOVER
DEBTS FROM ENTITIES IN THE PRC 6.12
A FOREIGN LEGAL ENTITY IN BANKRUPTCY INDIRECTLY OWNING TANGIBLE
OR INTANGIBLE ASSETS IN CHINA, THROUGH AN FIE
THE LEGAL VERSUS ADMINISTRATIVE ARGUMENTS
REAL ENCOUNTERS
THE LIWAN CASE
LIWAN DISTRICT CONSTRUCTION COMPANY V EURO-AMERICA
CHINA PROPERTY COMPANY LIMITED (MMM^M^W
THE ASIAN OCEANIC BANK LIMITED CASE
B&T CERAMIC GROUP SRL
BCCI OVERSEAS SHENZHEN
CC1C FINANCE LTD V GITIC
THE WAY FORWARD
PERSONAL BANKRUPTCY
COMITY AND EXEQUATUR
THE WORLD BANK INSOLVENCY PRINCIPLES
UNICITRAL MODEL LAW ON CROSS-BORDER INSOLVENCY
PURPOSES
STRUCTURE AND STYLE
CROSS-BORDER INSOLVENCY CONCORDAT
CONCLUSION
6.13
6.14
6.15
6.15
6.16
6.17
6.18
6.19
6.20
6.21
6.21
6.22
6.23
6.24
6.25
6.26
6.27
6.28
XL TABLE OF CONTENTS
CHAPTER SEVEN - CHECKLISTS FOR HONG KONG
INSOLVENCY ADMINISTRATIONS
THE HONG KONG INSOLVENCY REGIME 7.01
USE OF CHECKLISTS 7.02
MEMBERS VOLUNTARY LIQUIDATION 7.03
CREDITORS VOLUNTARY LIQUIDATION 7.04
COMMENCEMENT OF CREDITORS VOLUNTARY LIQUIDATION
UNDER SECTION 228A OF THE COMPANIES ORDINANCE 7.05
APPOINTMENT OF PROVISIONAL LIQUIDATORS 7.06
COMPULSORY LIQUIDATION (INCLUDING APPOINTMENT OF
SPECIAL MANAGERS) 7.07
RECEIVERSHIPS 7.08
SCHEMES OF ARRANGEMENT 7.09
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TABLE OF CONTENTS
PAGE
FOREWORD BY MR CAO SI YUAN VII
FOREWORD BY MR EAMONN O' CONNELL IX
FOREWORD BY DR LI SHUGUANG XI
PREFACE XV
ABOUT THE AUTHOR XIX
TABLE OF CASES XLIII
TABLE OF LEGISLATION XLVII
CHAPTER ONE - PUTTING CHINESE INSOLVENCY IN CONTEXT
PARA
INSOLVENCY IN CHINESE HISTORY
CIVILISATION AND CULTURE
CHINESE ECONOMIC HISTORY
TANG LEU SAW YEE (THE TANG CODE)
THE YUAN LAWS
TA TSING LEU LEE (THE QING CODE) (XWWM)
ARTICLE 149
COMMON FEATURES OF ANCIENT CHINESE LAWS
THE INSOLVENCY LAWS
BANKRUPTCY IN CHINA
THE QING LAW
BANKRUPTCY FRAUD
THE KUOMINTANG LAW
THE REPUBLIC OF CHINA BANKRUPTCY LAW
THE PEOPLE'S REPUBLIC OF CHINA BANKRUPTCY LAW
INSOLVENCY: CHINESE VERSUS WESTERN
ORIGIN OF BANKRUPTCY LAWS
BABYLONIC AND ROMAN LAW
BABYLON
ROME
LAWS OF WESTERN COUNTRIES
ITALY
FRANCE
GERMANY
ENGLAND
USA
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
TABLE OF CONTENTS
DEVELOPMENT OF INSOLVENCY LAW
COMPARES
TNE
D
EVE
LP
MENT
F INSOLVENCY LAWS
INSOLVENCY HISTORY AND THE LEGAL SYSTEM OF
HONG KONG
BRIEF HISTORY OF HONG KONG
SOURCES OF LAW IN HONG KONG
THE BASIC LAW
COMMON LAW AND THE RULES OF EQUITY
STATUTE LAW
CHINESE CUSTOMARY LAW
DEVELOPMENT OF INSOLVENCY LEGISLATURE
COMPANIES ORDINANCE AND WINDING-UP RULES
LEGISLATIONS CONCERNING CORPORATE INSOLVENCY
HISTORY AND DEVELOPMENT OF INSOLVENCY LEGISLATION
IN HONG KONG
IMPLEMENTATION OF INSOLVENCY LAW THROUGH COURT SYSTEM
COURT SYSTEM IN HONG KONG
COURT OF FINAL APPEAL
THE HIGH COURT
COURT OF APPEAL
COURT OF FIRST INSTANCE
DISTRICT COURT
MAGISTRACIES
SMALL CLAIMS TRIBUNAL
LANDS TRIBUNAL
LABOUR TRIBUNAL
LEGAL PROCEEDINGS
COMMENCEMENT OF CRIMINAL PROCEEDINGS
COMMENCEMENT OF CIVIL PROCEEDINGS
PLEADINGS
DISCOVERY OF DOCUMENTS
TRIAL
TYPES OF HEARING
COSTS OF THE PROCEEDINGS
SECURITY FOR COSTS
PERSONAL LIABILITY OF SOLICITOR AND LIQUIDATOR FOR COSTS
INSOLVENCY PROCEEDINGS
WINDING UP A COMPANY
ARRANGEMENT AND RECONSTRUCTION
1.23
1.24
1.25
1.26
1.27
1.28
1.29
1.30
1.31
1.32
1.32
1.33
1.34
1.35
1.36
1.36
1.37
1.38
1.39
1.40
1.41
1.42
1.43
1.44
1.45
1.45
1.46
1.47
1.48
1.49
1.50
1.51
1.52
1.53
1.54
1.54
1.55
TABLE OF CONTENTS
CHAPTER TWO - RESTRUCTURING IN HONG KONG
THE HONG KONG ECONOMY SINCE THE ASIAN
FINANCIAL CRISIS 2.01
RESTRUCTURING, REORGANISATION AND RESCHEDULING 2.02
WHAT DO WE MEAN? 2.02
RESTRUCTURING 2.03
REORGANISATION 2.04
RESCHEDULING 2.05
RECONSTRUCTION 2.06
WHAT DO WE SEE? 2.07
RESTRUCTURING ATTEMPTS OF THE SIU FUNG CERAMICS GROUP 2.08
LESSONS LEARNED 2.09
THE WIDER ASIAN EXPERIENCE 2.10
WHAT DO WE WANT? 2.11
COMPOSITION AND SCHEME OF ARRANGEMENT 2.12
LEGAL FRAMEWORK 2.12
KEY PROCEDURES 2.13
REASONS FOR A SCHEME 2.14
RESTRUCTURING THROUGH PROVISIONAL LIQUIDATORS 2.15
USE OF SCHEMES IN NON-RESTRUCTURING
SITUATIONS - THE BCCHK EXPERIENCE 2.16
THE FIRST SCHEME 2.17
SECOND SCHEME 2.18
THE EARLY SUCCESSES 2.18
HUTCHISON WHAMPOA LIMITED 2.20
COMPANY BACKGROUND 2.20
REASONS FOR FAILURE 2.21
THE RESTRUCTURING 1976-1979 2.22
ISSUE OF SHARES TO HONGKONG BANK AND SUBSCRIPTION TERMS 2.22
COMPANY DOCTOR AND MERGER WITH HWD 2.23
BASIS AND KEY TERMS OF MERGER 2.24
TAKEOVER BY CHEUNG KONG (HOLDINGS) LIMITED 2.25
MAJOR DEVELOPMENTS AFTER THE RESTRUCTURING 2.26
LESSONS LEARNED 2.27
WAH KWONG SHIPPING AND INVESTMENT COMPANY (HONG KONG)
LIMITED 2.28
COMPANY BACKGROUND 2.28
FINANCIAL POSITION 2.29
90-DAY INTEREST PAYMENT PLAN 2.30
LONG-TERM RESTRUCTURING PROPOSAL 2.31
90-DAY EXTENSION OF THE IPP 2.32
DEBT RESTRUCTURING AGREEMENT ("DRA ") 2.33
TABLE OF CONTENTS
2.34
2.35
DETAIL OF DEBT AND CAPITAL RECONSTRUCTION SCHEME
RESUMPTION OF TRADING
ORIENT OVERSEAS HOLDINGS LIMITED '
COMPANY BACKGROUND '
FINANCIAL POSITION PRIOR TO RESTRUCTURING IN 1985
RESTRUCTURING IN 1985
STEERING COMMITTEE
90-DAY MORATORIUM
FINANCIAL POSITION OVER THE RESTRUCTURING PERIOD 2.42
2 43
CORPORATE REORGANISATION
CAPITAL RECONSTRUCTION
DEBT RESTRUCTURING SCHEME 246
FINANCIAL POSITION AFTER THE RESTRUCTURING 2.47
LESSONS LEARNED
WARNING SIGNS
2 49
DISSECTION OF FINANCIAL STATEMENTS 2.50
BACKGROUND OF LISTCO A AND LISTCO B 2.51
FUND RAISING ACTIVITIES
SHARE PRICE MOVEMENTS OF LISTCO A AND LISTCO B 2.53
FINANCIAL POSITION OF LISTCO A 2.54
ANALYSIS AND COMMENTS ON LISTCO A 2.55
GENERAL 2.55
EQUITY METHOD OF ACCOUNTING AND INVESTMENTS IN ASSOCIATES 2.56
TURNOVER AND GROSS MARGIN 2.57
TRADE RECEIVABLES 2.58
TRADE AND OTHER PAYABLES 2.59
PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES 2.60
INTERESTS IN AN ASSOCIATE 2.61
CASH 2.62
SHORT TERM BORROWINGS 2.63
PLACING OF NEW SHARES 2.64
CASH FLOW FOR SIX MONTHS TO 31 DECEMBER 2000 2.65
FINANCIAL POSITION OF LISTCO B 2.66
ANALYSIS AND COMMENTS ON LISTCO B 2.67
GENERAL 2.67
TURNOVER AND GROSS MARGIN 2.68
TRADE RECEIVABLES 2.69
INVENTORIES 2.70
TRADE AND OTHER PAYABLES 2.1 \
PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
{TOGETHER "PREPAYMENTS") 2.72
DUE FROM / TO LISTCO A 2.73
CASH AND SHORT-TERM BORROWINGS 2.74
TABLE OF CONTENTS
PLACING OF NEW SHARES 2.75
CASH FLOW FOR SIX MONTHS TO 31 DECEMBER 2000 2.76
KEY TO ANALYZING FINANCIAL STATEMENTS 2.77
LESSONS LEARNED 2.78
SURVEY OF LISTED COMPANIES UNDER
RESTRUCTURING FROM 1998 TO 2004 2.79
SELECTION CRITERIA 2.79
SUMMARY OF RESULTS OF THE SURVEY 2.80
CONCLUSION 2.81
THE SURVIVORS - THE LAI SUN EXPERIENCE 2.82
BACKGROUND 2.82
BACKGROUND FOR RESTRUCTURING 2.83
FINANCIAL POSITION PRIOR TO RESTRUCTURING 2.84
STEPS TAKEN TO RESTRUCTURE INDEBTEDNESS 2.85
REORGANISATION 2000 2.86
SUMMARY OF MAJOR TRANSACTIONS TO REDUCE
INDEBTEDNESS OF LSD FROM 1997 - 2004 2.87
"FORMAL" DEBT RESTRUCTURING PROPOSAL 2.88
HOW THE MAGIC WORKED 2.89
CROSS-HOLDING BETWEEN LSD AND ESUN 2.90
LESSON LEARNED 2.91
SALE OF THE LISTING STATUS - A UNIQUE
HONG KONG PHENOMENON 2.92
LISTED COMPANIES IN FINANCIAL DIFFICULTIES 2.92
VALUE OF LISTING SHELL 2.93
SALE BY SHAREHOLDERS 2.94
SALE BY INSOLVENCY PRACTITIONERS 2.95
OTHER ISSUES AND CONSIDERATIONS 2.96
PROVISIONAL SUPERVISION 2.97
BACKGROUND 2.97
COMPANIES (AMENDMENT) BILL 2000 AND COMPANIES
(CORPORATE RESCUE) BILL 2001 2.98
KEY PROCEDURES 2.98
COMMENCEMENT OF PROVISIONAL SUPERVISION 2.99
THE PROVISIONAL SUPERVISOR 2.100
STATEMENT OF AFFAIRS 2.101
THE MORATORIUM 2.102
TREATMENT OF OUTSTANDING WAGES AND OTHER ENTITLEMENTS 2.103
SUPER PRIORITY BORROWING 2.104
VOIDABLE TRANSACTION AND INSOLVENT TRADING 2.105
MEETING OF CREDITORS 2.106
KEY ISSUES OF CONCERN TO PRACTITIONERS 2.107
TABLE OF CONTENTS
CHAPTER THREE - RESTRUCTURING IN CHINA
CHINESE ENTERPRISE AND THE REFORM PROGRAMME 3.01
THE REHABILITATION CULTURE ^.01
PRE-1949 POLITICS AND BUSINESS DEVELOPMENT
POST-1949 POLITICS AND BUSINESS DEVELOPMENT
3
4
THE 1978 AND 1984 REFORMS
3
RECONSTRUCTION AND REHABILITATION THROUGH MERGERS
AND ACQUISITIONS
J
*
UU
ASSET DISPOSAL AND FORMS OF RESTRUCTURING 3.07
T
/"ID
PROBLEMS AND CONCERNS
DV
THE 1993 REFORM
3 09
UNIFICATION OF RMB RATES
3 L
TYPES OF ENTERPRISES 3 * * *
DOMESTIC FUNDED ENTERPRISES (P$M4KM) 3.12
STATE-OWNED ENTERPRISES (BWJKM) 3.12
COLLECTIVELY-OWNED ENTERPRISES (MMLKM) 3.13
SHARE-HOLDING COOPERATIVE ENTERPRISES {WT&'NFC'KM 3.14
JOINT OWNERSHIP ENTERPRISES /
JOINT-OPERATION ENTERPRISES (WMDTM) 3.15
LIMITED LIABILITY CORPORATIONS (WP&JFFFJII- W) 3.16
SHARE HOLDING ENTERPRISES / SHAREHOLDING
CORPORATION LIMITED (MFTWPG&W) 3.17
PRIVATE ENTERPRISES ($B M^KM) 3.18
ENTERPRISES WITH FUNDS FROM HONG KONG,
MACAO AND TAIWAN (M$&0&WJKM) 3.19
FOREIGN FUNDED ENTERPRISES (R*$JIFT%(JK0)
3.20
STATE-OWNED ENTERPRISE, COMMUNE AND EMPLOYEES 3.22
STATE-OWNED ENTERPRISES AND THE LOCAL COMMUNE 3.22
WAGES AND WELFARE 3.23
LABOUR UNREST 3.24
SOCIAL INSURANCE AND SECURITY 3.25
THE EARLIER LAWS AND PRACTICES 3.26
PROBLEMS ENCOUNTERED 3.27
SOCIAL WELFARE AND LABOUR LEGISLATION 3.28
RETIREMENT AND PENSION INSURANCE 3.29
MEDICAL INSURANCE 3 30
UNEMPLOYMENT INSURANCE 3.31
INDUSTRIAL INJURIES INSURANCE 3.32
FUTURE DEVELOPMENT OF THE SOCIAL SECURITY AND
INSURANCE SYSTEM 3 33
SOCIAL SECURITY FUND A 34
TABLE OF CONTENTS XXVII
LEGAL AND ACCOUNTING FRAMEWORK
FOR RESTRUCTURING 3.35
LEGAL FRAMEWORK 3.35
ACCOUNTING FRAMEWORK 3.36
TYPES OF DEBT RESTRUCTURING 3.37
REPAYMENTS ARE IN CASH AT A VALUE LOWER THAN THE BOOK
VALUE OF THE DEBT 3.38
REPAYMENTS ARE IN NON-CASH ASSETS 3.39
A DEBT-EQUITY SWAP IS USED 3.40
THE DEBT CONDITIONS ARE AMENDED 3.41
DISCLOSURES 3.42
RESTRUCTURING AS A PROCESS IN BANKRUPTCY 3.43
FOREIGN INVESTMENTS AND FOREIGN INTERESTS IN RESTRUCTURING 3.44
INVESTMENTS BY FOREIGN INVESTORS 3.44
FOUR ACQUISITION SCENARIOS 3.45
PRICE AND CAPITAL CONTRIBUTION 3.46
SHAREHOLDING AND DEBT TO EQUITY RATIOS 3.47
LIABILITIES 3.48
REPORTING REQUIREMENTS 3.49
RESTRUCTURING OF NON-PERFORMING LOANS 3.50
REASONS FOR ACCUMULATING NPLS 3.51
CHANGE OF SOES' FINANCING POLICY 3.52
CHANGE IN THE NATIONAL INCOME DISTRIBUTION STRUCTURE 3.53
DETERIORATING PERFORMANCE OF STATE-OWNED ENTERPRISES 3.54
FINANCIAL BURDEN OF STATE-OWNED ENTERPRISES 3.55
TRIANGULAR DEBTS 3.56
BANKING SECTOR AND NON-PERFORMING LOANS 3.57
EFFECTS OF NPL 3.58
UNSTABLE BANKING SYSTEM AND PREVALENCE OF TRIANGULAR DEBT 3.58
LOAN CLASSIFICATION BY CHINESE BANKS 3.59
ASSET MANAGEMENT COMPANIES 3.60
LEGAL FRAMEWORK OF ESTABLISHING AMC 3.61
THE FIRST AMC: CINDA ASSET MANAGEMENT 3.62
A DILEMMA: QUICK CASH OR HIGH RECOVERY 3.63
ROLE OF THE OVERSEAS INVESTORS 3.64
RESULTS 3.65
REFORM OF STATE-OWNED BANKS 3.66
OTHER NPL DISPOSAL MECHANISMS 3.67
AUCTIONING OFF SOES 3.68
DEBT-EQUITY SWAP 3.69
SECURITISATION 3.70
THE CHANGCHUN APPROACH 3.71
OTHER ASIAN EXPERIENCES 3 72
XXVIII TABLE OF CONTENTS
THE RESTRUCTURING OF ITICS
3
"
73
WHAT ARE ITICS
3 ?4
EARLY TRUST COMPANIES
MODERN TRUSTS - ITICS
3/75
PBOC TAKING THE LEAD
376
THE FIVE REFORMS OF TICS
3 77
FIRST REFORM IN 1982
3J7
SECOND REFORM IN 1985
3
-
78
THIRD REFORM IN 1988
3
-
79
FOURTH REFORM IN 1993
3
-
80
FIFTH REFORM IN 1999 3.81
LEGAL AND REGULATORY FRAMEWORK 3.82
BEFORE THE FIFTH REFORM 3.83
AFTER THE FIFTH REFORM 3.84
LIST OF RELEVANT LAWS PROMULGATED SINCE THE 1980S 3.85
NATURE AND OPERATION OF TICS 3.86
ITICS AS WINDOW COMPANIES 3.87
IMPACT OF ASIAN FINANCIAL CRISIS ON ITICS 3.88
THE FALL OF ITICS 3.89
THE RISE OF ITICS 3.90
ENACTMENT OF NEW LEGISLATION 3.91
TRUST LAW OF THE PEOPLE'S REPUBLIC OF CHINA 3.92
MEASURES ON MANAGING TRUST AND INVESTMENT COMPANIES
(MFT&M&WWMMM 3.93
PROVISIONAL MEASURES ON MANAGING TRUST FUNDS IN TRUST
AND INVESTMENT COMPANIES
(MMMMMMMWMM) 3.94
ITICS WITH A NEW MISSION 3.95
CONCLUSION 3.96
THE GDE RESTRUCTURING 3.97
BACKGROUND AND WORKINGS OF GDE 3.97
THE CRISIS, NEGOTIATIONS AND SOLUTION 3.98
CRISIS 3.9G
NEGOTIATIONS 3.99
THE FINAL DEBT RESTRUCTURING AGREEMENT 3.100
DISTRIBUTION OF DEBTS PARTICIPATING IN THE RESTRUCTURING 3.101
FINANCIAL ASSETS RECOVERED BY ALL THE CREDITORS 3.102
INGREDIENTS OF SUCCESS 3 103
GOALS OF THE NEW GDE GROUP 3 104
WORKING RULES FOR THE NEW CDH GROUP 3 105
LESSONS LEARNED 3 106
TABLE OF CONTENTS
CHAPTER FOUR - CORPORATE INSOLVENCY IN HONG KONG
THE CAREY STREET OF HONG KONG 4.01
PRE-1980 INSOLVENCIES 4.01
INSOLVENCY STATISTICS 4.02
PRIVATE LIQUIDATORS 4.03
MAJOR COMPULSORY LIQUIDATIONS 4.04
ESTIMATED POSITIONS OF ASSETS AND LIABILITIES 4.05
COMPULSORY AND VOLUNTARY LIQUIDATIONS 4.06
MING TAK BANK ("MING TAK") (WLG&ST) 4.07
BACKGROUND 4.08
ADMINISTRATION OF BANKRUPTCY 4.09
COMMITTEE OF INSPECTION 4.10
CONDUCT OF THE BANKRUPT 4.11
CANTON TRUST AND COMMERCIAL BANK LIMITED ("CANTON TRUST")
LESSONS LEARNED 4.13
HONG KONG TAKEN BY SURPRISE 4.14
THE FIRST PLANELOAD OF LIQUIDATORS 4.14
IAN GRANT ROBINSON 4.15
BIRTH OF A NEW PROFESSION 4.17
FALL OF GAMMON HOUSE (THE CARRIAN GROUP) 4.18
BACKGROUND 4.19
GEORGE TAN AND THE ESTABLISHMENT OF CARRIAN 4.20
GAMMON HOUSE, MAI HON AND OTHER EXPANSIONS 4.21
FAILURE 4.22
FINANCIAL POSITIONS 4.23
ATTEMPTED RESTRUCTURING 4.24
COLLAPSE 4.25
LIQUIDATION AND THE AMOUNT OF DEBTS 4.26
INVESTIGATION 4.27
CLAIMS AGAINST PROFESSIONALS 4.28
LESSONS LEARNED 4.29
THE BANKING CRISIS 4.30
THE COLLAPSED BANK THAT PROVED SOLVENT 4.31
BACKGROUND 4.31
CLOSURE 4.32
PROPOSED RESCUE BY THE HONG KONG CHINESE BANK 4.33
THE SOLVENT BANK THAT WAS WOUND UP 4.34
HAPPY ENDING 4.35
PAYMENTS 4.35
TABLE OF CONTENTS
SPECIAL FEATURES AND ISSUES OF BCCHK
TRADE FINANCE
PIPELINE TRANSACTIONS
COUNTRY-WISE AND BANKWISE NET POSITION
4
-
3
EXPOSURE TO THE BCCI GROUP *
JY
THE RELEVANT DATE
APPLICATION OF SET-OFF PRINCIPLES TO BCCHK
4
-'*
Z
MS FASHION LIMITED
4 43
THE YOUNG BROTHERS
444
TAMWINGCHUEN
445
LESSONS LEARNED
4
-
4
CLIPPING HONG KONG'S INTERNATIONAL WINGS 4.47
LIQUIDATION OF THE PEREGRINE GROUP 4.48
BACKGROUND 4.48
BUSINESS AND FINANCIAL POSITION OF THE GROUP 4.49
CAUSES OF FAILURE 4.50
LIQUIDATION OFPIHL 4.51
LIQUIDATION OFPDL 4.52
LIQUIDATION OFPFIL 4.53
SPECIAL FEATURES OF THE PEREGRINE LIQUIDATION 4.54
BANQUE NATIONALE DE PARIS AND KWONG SANG HONG 4.55
CLAIM FROM COMMERCZBANK 4.56
LIQUIDATION FEES 4.57
GOVERNMENT INSPECTION 4.58
ISDA RULING 4.59
DIRECTOR'S DISQUALIFICATION 4.60
PROTOCOL 4.61
LESSONS LEARNED 4.63
AKAI HOLDINGS LIMITED 4.64
INTRODUCTION 4.64
AKAI'S SIMPLIFIED GROUP STRUCTURE AT 1999 (SEE CHART 4.4) 4.65
HISTORY 4.66
RAPID EXPANSION 4.67
COLLAPSE 4.68
AKAI IN LIQUIDATION 4,69
THE RESTRUCTURING - SALE OF LISTING SHELL VIA SCHEME 4.70
FINANCIAL POSITIONS PRIOR TO THE RESTRUCTURING 4.71
LESSONS LEARNED 4.72
THE LEGAL FRAMEWORK 4.73
COMPANIES ORDINANCE AND WINDING-UP RULES 4.73
LEGISLATIONS CONCERNING CORPORATE INSOLVENCY A.1A
BRIEF HISTORY AND DEVELOPMENT OF BANKRUPTCY LEGISLATION
IN HONG KONG 4 75
TABLE OF CONTENTS
TYPES OF CORPORATE INSOLVENCIES
INSOLVENCY PRACTITIONERS
INSOLVENCY PROCEDURES
CONTRACTUAL ARRANGEMENT
SCHEME OF ARRANGEMENT
CREDITORS' VOLUNTARY LIQUIDATION
SECTION 228A LIQUIDATION
COMPULSORY LIQUIDATION
COURT LIQUIDATION UNDER A REGULATING ORDER
COURT LIQUIDATION BY WAY OF SUMMARY PROCEDURE
LIQUIDATION OF UNREGISTERED OR OVERSEAS COMPANIES
RECEIVERSHIP
OTHER ISSUES CONCERNING CORPORATE INSOLVENCY
PRIORITY OF CLAIMS
STATEMENT OF AFFAIRS
INSOLVENCY OFFENCES
INVESTIGATION AND REPORT ON CONDUCT OF DIRECTORS
QUESTION MANAGEMENT
RECORDS
VALIDITY OF CHARGES
COMPARISON OF ASSETS WITH LAST BALANCE SHEET
TRADING LOSSES
TRANSACTIONS WITH ASSOCIATED COMPANIES OR CONNECTED PERSONS
STATUTORY BOOKS
DISSOLUTION OF COMPANIES
DISPOSITION OF SOLVENT DEFUNCT COMPANIES
MEMBERS' VOLUNTARY LIQUIDATION
STRIKING OFF AND DEREGISTRATION OF DEFUNCT COMPANY
REINSTATEMENT OF DEREGISTERED COMPANIES
PROPOSED REFORMS TO INSOLVENCY LAW
EMPLOYEE ISSUES
TO PAY OR NOT TO PAY
WAGES
PREFERENTIAL CLAIM ON WAGES
SEVERANCE PAYMENT
PREFERENTIAL CLAIM FOR SEVERANCE PAYMENT
WAGES IN LIEU OF NOTICE
PREFERENTIAL CLAIM FOR PAYMENT IN LIEU OF NOTICE
ACCRUED HOLIDAY AND ANNUAL LEAVE REMUNERATION
PREFERENTIAL CLAIM ON ACCRUED HOLIDAY REMUNERATION
MATERNITY LEAVE
DATE OF TERMINATION
4.76
4.77
4.78
4.78
4.79
4.80
4.81
4.82
4.83
4.84
4.85
4.86
4.87
4.87
4.88
4.89
4.90
4.91
4.92
4.93
4.94
4.95
4.96
4.97
4.103
4.104
4.105
4.106
4.107
4.108
4.109
4.109
4.110
4.111
4.112
4.113
4.114
4.115
4.116
4.117
4.118
4.119
XXXI
XXXII TABLE OF CONTENTS
THE PROTECTION OF WAGES ON INSOLVENCY FUND 4.120
THE PROTECTION OF WAGES ON INSOLVENCY ORDINANCE (PWIO) 4.120
EX-GRATIA PAYMENT UNDER THE PWIO 4.121
EX-GRATIA PAYMENT 4.122
FEES AND REMUNERATION 4.123
WHAT THE BOOK SAYS
4123
THE PRACTICE PRIOR TO MAXWELL AND PEREGRINE 4.124
THE PRACTICE POST MAXWELL AND PEREGRINE 4.125
THE PROCEDURAL GUIDE 4.126
IN RETROSPECT 4.127
CHAPTER FIVE - ENTERPRISE BANKRUPTCY IN CHINA
THE LONG ROAD TO A HUMBLE START 5.01
THE START 5.01
INTRODUCTION 5.01
BANKRUPTCY REGULATIONS 5.02
1986 BANKRUPTCY LAW 5.03
PUBLIC OPINION 5.04
REVISING THE BANKRUPTCY LAW 5.05
THE UNCERTAINTIES 5.06
MAIN DIFFICULTIES 5,06
CONCEPTUAL UNCERTAINTY 5.07
OVERVIEW 5.07
ROLE UNCERTAINTY 5.08
WHAT SHOULD THE BANKRUPTCY LAW DO ? 5.08
LEGAL UNCERTAINTY 5 09
JUDICIAL UNCERTAINTY 5 JQ
CORRUPTION 5 ^Q
REGULATION ATTEMPTS 5 \\
THE BARRIERS - 17
INTRODUCTION R ^
IDEOLOGICAL DIFFICULTIES 5 J2
DEFINING BANKRUPTCY
5 J3
MULTIPLICITY OF DISCIPLINES AND LACK OF CORRESPONDING LEGISLATION S!L4
OVERVIEW .
14
INADEQUATE ACCOUNTING AND VALUATION SYSTEM 5 15
CURRENT SITUATION
5 L5
LACK OF RELIABLE STATISTICS
5
'
L7
OVERVIEW ' -
IN CAO SI YUAN'S WORDS
5I
G
INTRODUCTION , *
CAO'S VIEW ON BANKRUPTCY
5
'
19
TABLE OF CONTENTS XXXIII
THE LEGAL FRAMEWORK
THE RELEVANT LEGISLATION
NATIONAL LEGISLATION
REGIONAL LEGISLATION
RELEVANCE OF LEGISLATION
THE 1986 ENTERPRISE BANKRUPTCY LAW (TRIAL IMPLEMENTATION)
CONTENTS
PREAMBLE AND EFFECTIVE DATE
ELIGIBILITY FOR BANKRUPTCY
OVERVIEW
THE 1991 SUPREME COURT'S JUDICIAL INTERPRETATION
CONTENTS
AIMS OF THE 1991 OPINION
CHAPTER 19 OF THE CIVIL PROCEDURE LAW
OVERVIEW
THE 2002 SUPREME COURT'S JUDICIAL INTERPRETATION
CONTENT
EFFECT
THE 2004 DRAFT ENTERPRISE BANKRUPTCY LAW
REDRAFTING OF THE BANKRUPTCY LEGISLATION
PREAMBLE AND APPLICATION
ELIGIBILITY FOR BANKRUPTCY
KEY PROCEDURES
INTRODUCTION
"INABILITY TO PAY DEBT"
JURISDICTION AND DEFINITION
GROUND FOR APPLICATION FOR BANKRUPTCY
APPLICATION FOR BANKRUPTCY
PROCEDURE
REORGANISATION (INTRODUCED UNDER THE 2004 DRAFT
ENTERPRISE BANKRUPTCY LAW)
PROCEDURE
RECONCILIATION
PROCEDURE
CREDITORS' MEETING
COMPOSITION AND ITS FUNCTIONS
CREDITORS' COMMITTEE (INTRODUCED UNDER THE 2004 DRAFT ENTERPRISE
BANKRUPTCY LAW)
COMPOSITION AND ITS FUNCTIONS
BANKRUPTCY PROCEEDINGS
DECLARATION FOR BANKRUPTCY
BANKRUPTCY COMMITTEE AND ADMINISTRATOR
5.20
5.20
5.20
5.21
5.22
5.23
5.23
5.24
5.25
5.25
5.26
5.26
5.27
5.28
5.28
5.29
5.29
5.30
5.31
5.31
5.32
5.33
5.34
5.35
5.35
5.36
5.37
5.37
5.38
5.38
5.39
5.39
5.40
5.40
5.41
5.41
5.42
5.42
5.43
TABLE OF CONTENTS
DEBTS AND ASSETS IN THE BANKRUPTCY AND THEIR RECOVERY,
ADMINISTRATION AND REALISATION
5 44
BANKRUPTCY EXPENSES AND DISTRIBUTION TO CREDITORS 5.45
TERMINATION OF BANKRUPTCY PROCEDURES
5
.46
SUMMARY
CHARTS FOR KEY PROCEDURES
OTHER LIQUIDATION PROCEDURES
5
-48
INTRODUCTION
5
-48
COMMENCEMENT OF LIQUIDATION 5.49
LIQUIDATION CIRCUMSTANCES 5.49
LIQUIDATION COMMITTEE 5.50
FORMATION 5.50
PROCEDURE 5-51
VALUATION OF STATE-OWNED ASSETS 5.52
SAAB AND SASAC 5.52
THE OLD SYSTEM 5.53
MAIN FEATURES 5.53
THE NEW REGIME 5.54
THE VERIFICATION MEASURES 5.55
THE FILING MEASURES 5.56
QUALIFICATION OF VALUATION AGENCIES 5.57
OVERVIEW 5.57
ADMINISTRATION OF TRANSFER OF STATE-OWNED INTEREST IN ENTERPRISES 5.58
NEWLY ISSUED MEASURES 5.58
THE EXPERIENCE SO FAR 5.59
THE CASE NUMBERS 5.59
INTRODUCTION 5.59
POLITICAL AND ECONOMIC CLIMATE 5.60
THE ISSUES AND INITIAL PROBLEMS 5.61
PRACTICAL CONSIDERATIONS 5.61
STATE-OWNED ENTERPRISES (SOES) 5.62
BANKRUPTCY AND SOES 5.62
EXAMPLE 5.63
LABOUR-RELATED ISSUES 5.64
PROTECTING THE WORKERS' LIVELIHOOD 5.64
SOCIAL EFFECTS 5.65
OTHER EFFECTS 5.66
BAD DEBT PROVISIONING 5.67
BANK LENDING 5.67
COMMERCIAL BANKING LAW 5.68
TRIANGULAR DEBTS 5 69
DEFINITION 559
EFFECTS 57O
TABLE OF CONTENTS
LACK OF FRESH CAPITAL FUNDING 5.71
INTRODUCTION 5.71
UTILIZATION OF FOREIGN CAPITAL 5.72
LENDING CONTROL AND BANKING SYSTEM 5.73
OVERVIEW 5.73
LENDER'S SECURITY AND PRIORITY OF CLAIMS 5.74
OVERVIEW 5.1 A
INVESTIGATIVE POWERS AND BANKRUPTCY OFFENCES 5.75
INTRODUCTION 5.75
ABUSE OF BANKRUPTCY PROCEDURES 5.76
OVERVIEW 5.76
LACK OF EXPERIENCED INSOLVENCY PRACTITIONERS 5.77
EFFECT ON DEVELOPMENT OF BANKRUPTCY LAW 5.77
INTERNATIONAL INFLUENCES 5.78
OVERVIEW 5.78
STATE INTERIM MEASURES 5.79
ADMINISTRATIVE DIRECTIVES 5.79
CSOP RESULTS 5.80
NATIONAL BANKRUPTCY LIAISON GROUP
NEED FOR REGULATION 5.81
DUTIES OF THE NBL GROUP 5.82
SELECTED CASES 5.83
CHONGQING KNITTING (HOLDINGS) FACTORY 5.83
BACKGROUND 5.83
SOLUTION 5.84
DISCUSSION 5.85
HARBIN EMPORIUM WHOLESALERS 5.86
SUMMARY 5.86
LESSONS LEARNED 5.87
SHANXI YUNCHENG DETERGENT FACTORY 5.88
BACKGROUND 5.88
SOLUTION 5.89
DISCUSSION 5.90
LESSONS LEARNED 5.91
LIQUIDATION AND BANKRUPTCY PROCEDURES
FOR FOREIGN INVESTMENT ENTERPRISES 5.92
LIQUIDATION VERSUS BANKRUPTCY 5.92
JOINT VENTURES 5.92
THE FIE LIQUIDATION PROCEDURES 5.93
1996 PROCEDURES 5.93
APPLICATION 5.93
OVERVIEW 5.94
XXX\I TABLE OF CONTENTS
5 95
COMMENCEMENT OF LIQUIDATION
CIRCUMSTANCES
TYPES OF LIQUIDATION
INTRODUCTION
ORDINARY LIQUIDATION
LIQUIDATION COMMITTEE
CREDITORS
5
'
98
C GO
SPECIAL LIQUIDATION
LIQUIDATION COMMITTEE
5
""
CREDITORS
5100
CLOSING (FOR BOTH ORDINARY AND SPECIAL LIQUIDATION) 5.101
OVERVIEW OF PROCESS 5.101
THE FIE BANKRUPTCY PROCEDURES
5
* *
2
2002 RULES
5
-
102
GITIC
5103
PRIOR TO GITIC
5103
BACKGROUND 5.103
CLOSURE AND COLLAPSE 5.104
STRUCTURE 5.104
REVIEW 5.105
CLOSURE 5.106
LENDERS 5.107
OVERSEAS CREDITORS 5.108
CORPORATE CREDITORS 5.109
DISCUSSION 5.110
1986 BANKRUPTCY LAW UNDER THE MICROSCOPE 5.111
APPLICABILITY, FLEXIBILITY AND INADEQUACY OF THE PRC
BANKRUPTCY REGIME 5.111
THE LEGAL BASIS OF BANKRUPTCY 5.112
CREDITORS' MEETING AND CREDITORS' COMMITTEE 5.113
LIQUIDATION COMMITTEE 5.113
CHAIRMEN'S COMMITTEE 5.114
FIVE PRINCIPLES 5.115
WORKING RULES 5.116
CREDITOR PROFILE 5.117
FINANCIAL POSITION 5.118
STATEMENT OF AFFAIRS 5.118
BOOK VALUE 5.119
ANNUAL REPORT 5.120
SECOND REPORT 5 121
THIRD REPORT AND FIFTH AND FINAL REPORT 5.122
TABLE OF CONTENTS XXXVII
EMPLOYEES
WORKING RULES
DEALING WITH ASSETS
ASSET OPINION
DISCUSSION
ECONOMIC CONTRACT LAW
LOANS
LOAN AGREEMENT
ENFORCEMENT
NOTICE TO RETURN ASSETS AND DEBTS
APPEALS
APPEAL PROCEDURES
PROBLEMS
REVOLT OF SUBSIDIARIES
CLAIMS MADE
DISCUSSION
THE 63-STOREYED GUANGDONG INTERNATIONAL HOTEL
BACKGROUND
APPLICABLE PRINCIPLES
OWNERSHIP OF ASSETS
DISCUSSION
GOVERNMENT GUARANTEE CLAIMS
DEALING WITH LIABILITIES
THE ADJUDICATION PRINCIPLES
INTRODUCTION
1. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO COMMERCIAL LOAN AGREEMENT
2. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO INTER FINANCIAL INSTITUTION LENDING
3. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS
IN RELATION TO TRUST DEPOSITS AND DESIGNATED
INVESTMENT OR LENDING
4. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS IN
RELATION TO GUARANTEES ISSUES
5. PRINCIPLES APPLICABLE TO ADJUDICATION OF PROOFS IN
RELATION TO LETTERS OF COMFORT ISSUES
GUARANTEE CLAIMS
REPORTED CLAIMS
ENFORCEABILITY
REGULATORY INSTRUMENTS
DISCUSSION
LETTERS OF COMFORT
CLAIMS
5.124
5.124
5.125
5.125
5.126
5.127
5.128
5.128
5.129
5.130
5.130
5.131
5.132
5.133
5.133
5.134
5.135
5.135
5.136
5.137
5.138
5.139
5.140
5.140
5.140
5.141
5.142
5.143
5.144
5.145
5.146
5.146
5.147
5.148
5.149
5.150
5.150
XXVVIII TABLE OF CONTENTS
CLAIM OF HK$2.6 BILLION FROM GUANG XIN ENTERPRISE LIMITED 5.151
INDEMNITY FROM GIT1C
5151
FROM INDEMNITY TO LETTER OF COMFORT
5
* *
52
CLAIMS OF NATURAL PERSONS AS DEPOSITORS ALREADY PAID BY THE
GUANGDONG PROVINCIAL GOVERNMENT 5.153
OVERVIEW
JLJJ
SET-OFF
5154
CONCEPT
5154
INVESTIGATIONS
5155
WHAT THE LIQUIDATION COMMITTEE SET OUT TO DO 5.155
WHAT WAS DONE AND WHAT HAPPENED 5.156
DIVIDENDS AND DEREGISTRATION 5.157
DIVIDEND PAYMENTS 5.157
PREMATURE CLOSING OF BANKRUPTCY PROCEEDINGS 5.158
MAJOR OUTSTANDING UNREALISED ASSETS 5.159
POST-CLOSURE BANKRUPTCY ADMINISTRATION 5.160
PROCEDURES AND ISSUES ARISING 5.161
SUPPLEMENTARY MEASURES AND REGULATIONS 5.162
RIGIDNESS AND CLOSED SHOP ADMINISTRATION 5.163
CHAIRMEN'S COMMITTEE 5.164
LESSONS LEARNED AND QUESTIONS UNANSWERED 5.165
LESSONS LEARNED 5.165
QUESTIONS UNANSWERED 5.166
LESSONS LEARNED 5.167
THE NEW ENTERPRISE BANKRUPTCY LAW 5.168
NEW DRAFT BANKRUPTCY LAW 5.168
REDRAFTING OF THE BANKRUPTCY LEGISLATION 5.168
NEW FEATURES OF THE NEW DRAFT ENTERPRISE BANKRUPTCY LAW 5.169
PURPOSE OF THE LAW 5.170
BASIS AND SCOPE OF APPLICATION 5.171
CAUSES FOR BANKRUPTCY 5.172
CROSS-BORDER INSOLVENCY 5.173
CREDITORS'COMMITTEE 5.174
REORGANISATION 5.175
RESETTLEMENT OF EMPLOYEES 5.176
BANKRUPTCY OFFENCES 5.177
BANKRUPTCY ADMINISTRATION 5.178
NEW OPPORTUNITIES FOR HONG KONG ACCOUNTANTS 5.179
CONCLUSION 5 180
SUMMARY OF DIFFERENCES IN THE NEW DRAFT BANKRUPTCY
LAW (2004) AND THE CURRENT LAW (1986) 5.181
TABLE OF CONTENTS
CHAPTER SIX - INTERNATIONAL ASPECTS OF PRC
ENTERPRISE BANKRUPTCY
WHO ARE YOU, MR LIQUIDATOR? 6.01
WHAT CAN YOU BRING TO ME ? 6.01
LAW ALWAYS ON MY SIDE 6.02
ENFORCEMENT OF FOREIGN JUDGMENTS - LEGAL BASIS 6.03
SERVING FOREIGN JUDICIAL DOCUMENTS AND OBTAINING EVIDENCE 6.04
ENFORCEMENT OF ARBITRATION AWARDS 6.05
WHAT IS OF CONCERN TO PRC PARTIES 6.06
RECOGNITION AND ENFORCEMENT 6.07
A PRACTICAL NOTE 6.07
WHAT IS RECOGNITION? 6.08
THREE SCENARIOS 6.09
THE EFFECTS OF FOREIGN BANKRUPTCIES 6.10
A FOREIGN LEGAL ENTITY IN BANKRUPTCY OWNING DIRECTLY TANGIBLE
OR INTANGIBLE ASSETS IN CHINA 6.11
A FOREIGN LEGAL ENTITY IN BANKRUPTCY SEEKING TO RECOVER
DEBTS FROM ENTITIES IN THE PRC 6.12
A FOREIGN LEGAL ENTITY IN BANKRUPTCY INDIRECTLY OWNING TANGIBLE
OR INTANGIBLE ASSETS IN CHINA, THROUGH AN FIE
THE LEGAL VERSUS ADMINISTRATIVE ARGUMENTS
REAL ENCOUNTERS
THE LIWAN CASE
LIWAN DISTRICT CONSTRUCTION COMPANY V EURO-AMERICA
CHINA PROPERTY COMPANY LIMITED (MMM^M^W
THE ASIAN OCEANIC BANK LIMITED CASE
B&T CERAMIC GROUP SRL
BCCI OVERSEAS SHENZHEN
CC1C FINANCE LTD V GITIC
THE WAY FORWARD
PERSONAL BANKRUPTCY
COMITY AND EXEQUATUR
THE WORLD BANK INSOLVENCY PRINCIPLES
UNICITRAL MODEL LAW ON CROSS-BORDER INSOLVENCY
PURPOSES
STRUCTURE AND STYLE
CROSS-BORDER INSOLVENCY CONCORDAT
CONCLUSION
6.13
6.14
6.15
6.15
6.16
6.17
6.18
6.19
6.20
6.21
6.21
6.22
6.23
6.24
6.25
6.26
6.27
6.28
XL TABLE OF CONTENTS
CHAPTER SEVEN - CHECKLISTS FOR HONG KONG
INSOLVENCY ADMINISTRATIONS
THE HONG KONG INSOLVENCY REGIME 7.01
USE OF CHECKLISTS 7.02
MEMBERS' VOLUNTARY LIQUIDATION 7.03
CREDITORS' VOLUNTARY LIQUIDATION 7.04
COMMENCEMENT OF CREDITORS' VOLUNTARY LIQUIDATION
UNDER SECTION 228A OF THE COMPANIES ORDINANCE 7.05
APPOINTMENT OF PROVISIONAL LIQUIDATORS 7.06
COMPULSORY LIQUIDATION (INCLUDING APPOINTMENT OF
SPECIAL MANAGERS) 7.07
RECEIVERSHIPS 7.08
SCHEMES OF ARRANGEMENT 7.09 |
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| id | DE-604.BV021771225 |
| illustrated | Illustrated |
| index_date | 2024-07-02T15:38:30Z |
| indexdate | 2024-07-09T20:43:42Z |
| institution | BVB |
| isbn | 9626612746 |
| language | English Chinese |
| lccn | 2006615120 |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-014984144 |
| open_access_boolean | |
| owner | DE-M382 |
| owner_facet | DE-M382 |
| physical | XCVI, 1086 S. graph. Darst. |
| publishDate | 2005 |
| publishDateSearch | 2005 |
| publishDateSort | 2005 |
| publisher | Sweet & Maxwell Asia |
| record_format | marc |
| spelling | Tang, Alan Verfasser aut Insolvency in China and Hong Kong a practitioner's perspective by Alan Tang Hong Kong [u.a.] Sweet & Maxwell Asia 2005 XCVI, 1086 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Teilw. in chinesischer Schrift SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014984144&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Tang, Alan Insolvency in China and Hong Kong a practitioner's perspective |
| title | Insolvency in China and Hong Kong a practitioner's perspective |
| title_auth | Insolvency in China and Hong Kong a practitioner's perspective |
| title_exact_search | Insolvency in China and Hong Kong a practitioner's perspective |
| title_exact_search_txtP | Insolvency in China and Hong Kong a practitioner's perspective |
| title_full | Insolvency in China and Hong Kong a practitioner's perspective by Alan Tang |
| title_fullStr | Insolvency in China and Hong Kong a practitioner's perspective by Alan Tang |
| title_full_unstemmed | Insolvency in China and Hong Kong a practitioner's perspective by Alan Tang |
| title_short | Insolvency in China and Hong Kong |
| title_sort | insolvency in china and hong kong a practitioner s perspective |
| title_sub | a practitioner's perspective |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014984144&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| work_keys_str_mv | AT tangalan insolvencyinchinaandhongkongapractitionersperspective |