PRC court confirms recognition of a Hong Kong default judgment in relation to a bond keepwell deed

In November 2020, the Shanghai Financial Court delivered a judgment (“PRC Judgment”) which recognised a default judgment by the Hong Kong High Court against CEFC Shanghai International Group Limited, a PRC incorporated company (the “Company”).

The underlying Hong Kong default judgment (“HK Judgment”) was in relation to a claim for breach of a keepwell deed entered into between the Company and the holders of bonds issued by its subsidiary (the “Subsidiary”), whereby the Company had given certain undertakings to ensure that the Subsidiary remained solvent with sufficient liquidity to meet its payment obligations during the tenor of the bonds.

Read more