Recognition and assistance in cross-border insolvency: An analysis of The Joint Liquidators of Bull's-Eye Limited (in Liquidation) v Changjiang Securities Brokerage (HK) Ltd and others [2024] HKCFI 3000 [case comment]

Abstract

This article examines the recent decision of the Hong Kong Court of First Instance in The Joint Liquidators of Bull's-Eye Limited (in Liquidation) v Changjiang Securities Brokerage (HK) Ltd and Others [2024] HKCFI 3000, which highlights Hong Kong's evolving approach to recognition and assistance in cross-border insolvency. The case involved the recognition of insolvency proceedings initiated in the British Virgin Islands, despite the company's likely centre of main interests (COMI) being in Hong Kong. The Court's application of the managerial assistance exception, coupled with its comprehensive handling of regulatory constraints, demonstrates its pragmatic approach to facilitating international insolvency cooperation while respecting local regulatory frameworks. By balancing these considerations, the judgement reinforces Hong Kong's status as a leading jurisdiction for cross-border insolvency. The article analyses the factual and legal context of the case, explores its implications for insolvency practice and considers its potential influence on corporate structuring and insolvency planning in an increasingly interconnected global economy.