CW Advanced Technologies Limited – Recognition Issues Considered

In the recent case Re CW Advanced Technologies Limited,¹ the Hong Kong court took the opportunity, albeit only obiter dicta, to raise and briefly comment on certain unresolved questions surrounding three issues of interest to insolvency practitioners:

• first, whether a scheme moratorium ordered by a Singapore court under Singapore law can qualify for common law recognition in Hong Kong; and
• if yes, second, whether the Hong Kong court may grant assistance by appointing provisional liquidators; and
• third, whether a scheme of arrangement in general can be characterised as a 'collective insolvency proceeding' under Hong Kong law.

Case Background

The scheme company in question sought an order in Singapore for a six-month moratorium to follow an existing automatic 30-day moratorium. It then applied for a winding-up order in Hong Kong to invoke the local statutory protection from proceedings under the Companies (Winding-Up and Miscellaneous Provisions)