Insolvency

Our insolvency litigators regularly act in high profile insolvencies and corporate collapses in Hong Kong.

We are able to advise on all areas of contentious insolvency, including:

  • Advising appointment takers and insolvency practitioners
  • Identification and realisation of assets in insolvent estates
  • Pursuing recovery actions on behalf of appointment takers
  • Obtaining validation orders
  • Enforcement of security
  • Creditor services
  • Investigations and examinations
  • Ex parte applications for the appointment of provisional liquidators
  • Advising on cross border insolvency issues
  • General advice in respect of terminal and non-terminal companies
  • Advising directors on their duties and liabilities

Frequently asked questions

It means a company can no longer meet its financial obligations to its lenders as debts become due.

  • A members’ voluntary liquidation;
  • A creditors’ voluntary liquidation; and
  • A compulsory liquidation ordered by the Court.

When a company goes into liquidation its assets are sold to repay creditors.

If the company has a genuine dispute to the debt in question, it can apply for an injunction to prevent a winding up petition from being presented.

No.

The company should consider whether it has a genuine dispute to the debt in question.  If so, it can contest the petition.

Yes, the Hong Kong Court does have jurisdiction to wind up a foreign non-registered company.  Such jurisdiction may be exercised if the following requirements are satisfied:-

  1. The company has a sufficient connection with Hong Kong;
  2. There is a reasonable possibility that the winding up order would benefit those applying for it; and
  3. The Court must be able to exercise jurisdiction over one or more persons in the distribution of the company’s assets.

Directors’ powers cease once liquidators are appointed and a winding up Order is made.  The liquidators will investigate the company’s affairs and assets during liquidation.  The liquidators may investigate and pursue the directors and other officers of the company if there is any misconduct on their part (e.g. fraudulent trading, unfair preference, misappropriation of assets, concealment of books and records, etc.).   There may be criminal consequences on the officers, so the officers concerned should seek legal advice as soon as possible.  

“Extremely professional, concise, timely and creative.”
“Gall is a first-class firm, offering practical and cost-effective advice”

Outstanding Firm, Dispute Resolution – Asialaw Profiles 2020

Tier 2, Insolvency

Benchmark Litigation Asia-Pacific, 2020

Dispute resolution boutique Gall regularly handles contentious insolvency matters on behalf of insolvency practitioners and debtors, and also often receives referral work from overseas law firms.

Leading Firm, Restructuring & Insolvency – Legal 500 Asia Pacific 2019

A boutique practice that ‘provides great technical advice and is sensitive to commercial issues’.

Leading Firm, Dispute Resolution – Legal 500 Asia Pacific 2019

The team is “always on time” and “gives strong advice.

Leading Firm, Dispute Resolution – Chambers Asia Pacific 2019

Highly Recommended Firm, Restructuring & Insolvency

Asialaw Profiles 2020

Tier 1 Firm, Hong Kong Domestic Firms

Benchmark Litigation Asia-Pacific 2019

Tier 2 Firm, Restructuring and Insolvency Hong Kong Domestic Firms

Benchmark Litigation Asia-Pacific 2019

Winner, Dispute Resolution Firm of the Year

The Asian Legal Awards 2019

Winner, National Law Firm of the Year – Hong Kong
Winner, Dispute Resolution Boutique of the Year

Asialaw & Benchmark Litigation Asia 2018