HWANG LEE & ASSOCIATES.

HWANG LEE & ASSOCIATES  is acutely aware of the accelerating pace of change in the regulatory environments of financial markets and financial institutions and understands the challenges faced by our clients.

The team of lawyers in our Financial Services Regulation Practice has therefore developed expert knowledge and understanding of the new regulatory developments globally as well as in Hong Kong.

This builds on our many years of experience in dealing with regulatory matters across the full range of financial services and institutions such as banks and exchange control, credit providers, the national payment system, securities exchanges, long-term and short-term insurance companies, investment managers, asset managers, fund managers, pension funds, medical schemes, collective investment schemes and hedge funds.

The combination of our accumulated specialist expertise with our established relationships with and insights into the regulatory bodies having jurisdiction enables us to provide our clients with incisive and appropriate advice on all financial regulatory issues and to assist with compliance and risk management so as to avoid the ever-present threat of reputational harm.

Restructuring of companies in financial distress is on the increase globally. Hong Kong companies which are financially distressed or that trade in insolvent circumstances in Hong Kong now have an opportunity to reorganize and restructure. This has far-reaching effects on creditors, financial institutions, shareholders, employees and restructuring specialists.

Our Insolvency, Business Rescue & Restructuring team has close familiarity with the legislation and the manner in which business rescue proceedings are to be implemented. This includes advising on the manner in which companies should file for business rescue proceedings, the appointment of business rescue practitioners to supervise business rescue proceedings, as well as the duties and liabilities of all parties involved in the business rescue process.

The purpose of business rescue in Hong Kong is to maximize the likelihood of the company continuing in existence on a solvent basis. The key to business rescue will be the successful development and implementation, if approved by creditors, of a business rescue plan to rescue the company by restructuring its affairs, business, property, debt, other liabilities and equity. In the event that this is not possible, the implementation of a business rescue plan should result in a better return for the company’s creditors or shareholders, than would result from an immediate liquidation of the company.

CHAU & CO is able to advise business rescue directors, stakeholders, employees and creditors during all stages of the business rescue process. This includes providing guidance to creditors in respect of strategic decisions (such as whether or not to vote in favor of a business rescue plan or whether or not to embark on the winding up process as an alternative to business rescue) and advice on protecting their security; particularly when it comes to financing and lending transactions in the business rescue scenario.

Speed is of the essence in the business rescue process. Very short time periods are set out in the Act and it is important that all stakeholders have proper legal support to call upon at short notice.

Our approach to business rescue is proactive and focuses on advising creditors in a way that ensures that they achieve maximum returns in the business rescue process.

If business rescue is not recommended, or fails, our Insolvency, Business Rescue & Restructuring team is able to assist directors, stakeholders, liquidators and creditors during the liquidation process. This includes advising on the commencement of winding-up proceedings as an alternative to litigation and providing support in the conduct of insolvency enquiries.

In insolvency matters, cross-border recovery skills are key. The team’s expertise in this field extends across the Asian continent and into international jurisdictions, with proceedings having been successfully instituted in many countries around the world.

Services includes:

• Advising directors of companies trading in what may be insolvent circumstances.
• Advising on whether or not a company should pass a resolution for business rescue.
• Advising on whether or not creditors should make application for business rescue as opposed to liquidation.
• Advising creditors whether or not to oppose business rescue proceedings.
• Assisting creditors in attending meetings and dealing with their claims and securities in business rescue.
• Liaising with the business rescue practitioner and existing directors.
• Advising in relation to the provision of post-commencement finance.
• Advising on the general moratorium on legal proceedings against a company which has filed for business rescue.
• Protection of property interests.
• Advising on the effect of business rescue on contracts.
• Advising on whether or not to vote in favor of remuneration arrangements made by the business rescue practitioner.
• Advising on the structure, implementation and approval of the business rescue plan.
• Dealing with the company and its creditors.
• Advising on the commencement and administration of the insolvency process including proof of claims.
• Advising on cross-border recognition of liquidators and the attachment of assets in foreign jurisdictions.
• Advising on directors’ liability issues in terms of the new provisions relating to trading recklessly and in insolvent circumstances.
• Providing support in forensic legal issues arising from liquidation proceedings.
• Recovery of assets in the liquidation scenario.
• Advising on sequestration proceedings.
• Assistance with insolvency inquiries.