Offshore Litigation Blog

Over the past decade, the Hong Kong courts have given multiple important judgments concerning their power to wind up foreign companies. In a recent judgment, the Court of Appeal provided important clarification regarding a key element of this power.

Over the past couple of weeks, key players in the financial services world converged on the shores of the British Virgin Islands for two globally significant conferences: INSOL BVI Seminar and Fintech on the Seas (FOTS). The BVI relished its opportunity to play host, showcasing the sophistication of its financial services sector and legal market to an elite global audience.

In a recent decision involving the China Evergrande Group, the Hong Kong Court of First Instance reaffirmed the policing provisions of disclosure orders under Mareva/freezing injunctions.

In a recent landmark decision, the Singapore High Court in Re Taylor, Joshua James and another (Official Receiver, non-party) addressed the treatment of unclaimed cryptocurrencies during the liquidation of Eqonex Capital Pte Ltd, a digital asset exchange operator.

When a scheme of arrangement involving a compromise or arrangement is proposed between a company and its creditors or any class of them, the court is required to consider whether it would be appropriate to convene one or more meetings of creditors for the purposes of considering and voting on the scheme of arrangement.

The BVI has robust corporate insolvency legislation, fostering recoveries for creditors in the event of a liquidation. This article examines two areas where the BVI’s legislation, as interpreted by its Courts, is particularly developed: unfair preferences and challenges to the decisions of liquidators, as well as other office-holders. The strength of the BVI’s corporate insolvency legislation provides a reason for companies to incorporate in the territory.

The UK Supreme Court has recently provided important clarification as to the breadth of Section 213 of the Insolvency Act in Bilta (UK) Ltd (In Liquidation) v Tradition Financial Services Ltd (Bilta), holding that it is not intended to apply only to persons exercising management or control of the company’s business, but extends also to third party outsiders who have assisted or knowingly become parties to the carrying on of fraudulent business.

In a recent BVI case, the Commercial Court navigated various issues arising out of a winding up application brought by a creditor against a struck off and dissolved BVI company, based on an unregistered foreign judgment.

The English Court of Appeal’s decision in Servis-Terminal LLC v Drelle concerns the issue of whether unregistered or non-domesticated foreign judgments or arbitration awards can be used as a basis for insolvency proceedings. The English Court of Appeal ruled that such judgments cannot serve as a basis for bankruptcy petitions in England.

The Cayman Islands Grand Court recently considered the circumstances necessitating a second adjournment of a trial where a principal witness was unable to travel outside of the PRC to attend trial for cross-examination. In In The Matter of Shiliu Investment Group Limited, the Court re-examined the principles of fairness in a somewhat novel situation where the only two witnesses at trial were unable to travel to the Cayman Islands to give evidence.

The recent English High Court decision in Kireeva v Clement Glory Limited considered conflicts of law principles for the purposes of determining the location of shares in a BVI company and whether the English Court had jurisdiction to hear a trust claim regarding the beneficial ownership of BVI shares.

The Grand Court of the Cayman Islands follows the Privy Council decision in Sian v Halimeda and confirms that an applicant for an injunction restraining the presentation of a winding up petition must show that the debt is disputed on genuine and substantial grounds, even where there is an arbitration agreement.