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ARTICLE · 01 MAY 2024

Restructuring Provisional Liquidators May Not Be Dead After All

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When the restructuring officer regime was introduced, it was assumed by many that joint provisional liquidators would no longer be appointed for restructuring purposes, having been overtaken by the new regime.

GlobalInsolvency/Bankruptcy/Re-Structuring
David Lee
David Lee
Will Porter
Will Porter
Lorinda Peasland
Lorinda Peasland
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When the restructuring officer regime was introduced, it was assumed by many that joint provisional liquidators would no longer be appointed for restructuring purposes, having been overtaken by the new regime. The recent decision of Re Kingkey Financial International (Holdings) Ltd suggests that this assumption may not be sound. It also raises several interesting points regarding the restructuring officer regime that merit further consideration. This article considers the Kingkey case, and the points arising from it.

INTRODUCTION

The restructuring officer (RO) regime came into force nearly two years ago.1 It was intended to create a fit for purpose framework under which distressed entities (typically companies) could restructure. It was also introduced against the backdrop of growing criticism in other jurisdictions, principally Hong Kong, of the prior approach of appointing joint provisional liquidators (JPLs) to allow a company to stave off enforcement

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