The industry fears Hong Kongs consultation paper on a rescue regime for
distressed companies is poorly drafted. The paper has not
resolved several problematic proposals from 2001s bill
particularly regarding the treatment of employees.
The market is relieved that the government has shelved
2001s plan to extend liability for insolvent trading from
directors to senior management. The new proposals also remove
liability for trading when there was a suspicion
that the company was insolvent.
reported in IFLR last week, the government is seeking
comment on its plans to introduce a formal restructuring
process to Hong Kong.
However, some feel that despite more than 10 years of
consideration the process has not moved much beyond the 2001
bill. Key issues, such as the preferential treatment of