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International co-operation in cross-border insolvencies: smoothing the path for foreign liquidators in Hong Kong

A recent decision of the High Court of the Hong Kong Special Administrative Region (SAR) should make the task of liquidators of the British Virgin Islands (BVI), Cayman Islands and other foreign companies more straightforward in the region.

The application, which came before Hon Harris J in July 2014, concerned a company incorporated in the Cayman Islands that was wound up by order of the Cayman Grand Court. The liquidators applied to the Hong Kong court for recognition of the Cayman liquidation and for an order that the respondents produce certain documents to the liquidators. The application was made by means of a letter of request by which the Cayman court requested the Hong Kong court to make the orders described.

As Harris J observed, under principles of private international law, the authority of a liquidator whose appointment is recognised by the laws of the place of incorporation should be recognised in Hong Kong without the need for an application to the court…

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