The Hong Kong Government has been looking at legislative proposals to introduce a new corporate rescue procedure, which would (if enacted into law) impose a moratorium on legal action for up to six months for companies in short term financial difficulties that are subject to such procedure. In connection with such proposals, the Hong Kong Government has recently issued a Consultation Paper on the Review of Corporate Rescue Procedure.
CLICK HERE for our bulletin which provides a summary of the proposed corporate rescue procedure and its potential implications for derivatives market participants, in particular their ability to exercise self-help remedies (such as close-out netting) in relation to derivatives transactions.
