Reed Smith Client Alerts

The Hong Kong court has the jurisdiction to recognise insolvency proceedings in both common law and civil law jurisdictions.  Once the insolvency proceedings have been recognised, the Hong Kong court will grant assistance to the administrators or liquidators by applying Hong Kong insolvency law. The recognition of liquidation is necessary to ensure that a company’s assets can be realised and distributed on a pari passu basis in accordance with one single insolvency regime. In its latest decision in Re HNA Group Co., Limited (in Reorganisation in the Mainland of the People’s Republic China) [2021] HKCFI 2897, the Hong Kong court granted an order providing recognition and assistance to the Mainland reorganisation process of HNA Group Co., Limited.

Reorganisation of HNA Group

HNA Group Co., Limited (HNA Group) is a well-known company based in Hainan. Its business extended to aviation, investments in hotel and golf courses and various other business activities. HNA Group experienced financial difficulties, and on 10 February 2021, a reorganisation (the Reorganisation) of HNA Group commenced pursuant to the order of the Hainan Province Higher People’s Court (the Hainan court). A liquidation group was formed and appointed as the administrator of HNA Group (the Administrator).

Letter of request from the Hainan court to the Hong Kong court

Upon the application of the Administrator, the Hainan court issued a letter of request directed to the Hong Kong court seeking recognition of the Reorganisation in mainland China and providing powers of assistance to particular representatives of the Administrator in Hong Kong.