Corporate Reorganization in Hong Kong: Can Provisional Liquidation Come to the Rescue?

Abstract

Unlike most other jurisdictions in Asia, Hong Kong began its corporate insolvency law reform efforts prior to the onset of the Asian financial crisis. Nevertheless, Hong Kong has yet to enact an effective statutory corporate rescue procedure. This article discusses the Hong Kong government’s corporate rescue proposals currently under consideration and the emerging use of provisional liquidation to facilitate corporate rescue in Hong Kong. It concludes by recommending that the current proposals be scrapped and that a new bill be drafted that codifies the provisional liquidation corporate rescue procedures.