Learn more about how the HDY Team is supporting clients achieve their restructuring and insolvency objectives in Asia.
- Strengthen Myanmar's legal and institutional insolvency and restructuring regime
- Restructure of global litigation fund known as Centaur Group, with proceedings in the UK, Cayman Islands, British Virgin Islands, Hong Kong, Singapore, Canada and Australia
- Advising a leading Hong Kong-based debt trader on the recapitalisation and operational balance sheet restructure valued at A$200 million
- Complex cross-border restructuring through a deed of company arrangement, which included enforcing judgment and contractual rights against foreign parties
- Recovery of A$65 million in complex white collar crime across Australia and potentially Macau.
1. Strengthen Myanmar's legal and institutional insolvency and restructuring regime
THE OPPORTUNITY: HDY is advising the Asian Development Bank and the Republic of the Union of Myanmar on strengthening and modernising the legal and institutional framework of Myanmar's insolvency and restructuring regime. This project will support the transformation of Myanmar as it slowly embraces a market economy and opens its doors to foreign investment, and is expected to have a significant impact on key markets in the Asia-Pacific region.
OUR APPROACH: Our engagement includes drafting of new corporate insolvency laws for Myanmar and undertaking associated capacity development of institutions and the profession to support the introduction of those laws. In performing this engagement, HDY is undertaking extensive consultation with key stakeholders including members of the Myanmar parliament, the Union Supreme Court and the Attorney General's Department. HDY is committed to the importance of effective insolvency laws in producing fair outcomes.
2. Restructure of global litigation fund known as Centaur Group, with proceedings in the UK, Cayman Islands, British Virgin Islands, Hong Kong, Singapore, Canada and Australia
THE CHALLENGE: HDY advises the Cayman Islands, Hong Kong and Australian joint official liquidators on avenues to fund realisations and reorganisation efforts to maximise return to creditors and hold former management to account. Notably, investigations led by HDY have uncovered a complex scheme where millions of dollars were allegedly misappropriated by former management and diverted to various personal associates and entities in multiple jurisdictions.
OUR APPROACH: Proceedings commenced in August 2016 in Australian courts for fraud and breaches of duty under Australian and Cayman Islands laws against those persons involved. As part of the investigation effort, proceedings have been commenced in the Singapore and Hong Kong courts to gather further evidence under the Norwich Pharmacal principle. On the reorganisation side, efforts include a restructure of the corporate group to simplify and streamline the inter-company capital structure to maximise creditor recoveries.
3. Advising a leading Hong Kong-based debt trader on the recapitalisation and operational balance sheet restructure valued at A$200 million
THE CHALLENGE: HDY advised the SC Lowy consortium, a leading Hong Kong-based debt trader, to acquire the debt of ASX-listed McAleese transport services group and restructure the group's operations and balance sheet. Recapitalising the group and right sizing its debt burden through a debt for equity swap and forbearance structure facilitated a clean balance sheet restructure. Operationally viable businesses were extracted from the old group and formed the new Rivet Group, as well as facilitating necessary asset transfers and divestments through three inter-conditional deeds of company arrangement in December 2016.
THE OUTCOME: A whole of group solution allowing a group of viable businesses and companies to emerge from administration quickly and with minimal impact on trading and operations. At the same time a residual group of companies would remain subject to a programme of managed realisations by deed administrators to preserve value. The deeds of company arrangement facilitated the transfer of all unsecured claims against viable companies to McAleese and established a distribution fund to satisfy those claims eliminating the impact of unsecured creditors on the viable businesses and ensuring all employee entitlements were met. In addition, the business continued to operate during administration using additional working capital funding injected into the group by back-to-back loans between the SC Lowy Consortium, receivers appointed by the Consortium and the administrators. This helped preserve over 1,300 jobs and a national transport and logistics network which now operates as the privately-held Rivet Group.
4. Complex cross-border restructuring through a deed of company arrangement, which included enforcing judgment and contractual rights against foreign parties
THE CHALLENGE: Payless Shoes Pty Ltd (administrators appointed), a subsidiary of US-based Payless ShoeSource Inc., entered into administration on 22 November 2016. The corporate structure of the Payless Group is complex, relevantly including entities registered in Hong Kong, the United States, Netherlands and the Cayman Islands. Our client sought to successfully achieve a complex cross-border restructuring through a deed of company arrangement, which includes enforcing judgment and contractual rights against parties located in multiple jurisdictions including Hong Kong, China, the US, Cayman Islands and the Netherlands.
OUR APPROACH: HDY is advising the Australian administrators of Payless Shoes Pty Ltd on the treatment of certain creditor claims in the administration. HDY is analysing complex intercompany dealings to assist the administrators in determining the quantum of claims in the administration, providing legal and strategic advice on claims and recovery options in Australia, and providing strategic advice on recovery and enforcement options available in various jurisdictions including the Netherlands, Cayman Islands and the United States.
5. Recovery of A$65 million in complex white collar crime across Australia and potentially Macau
THE CHALLENGE: Hyundai commenced proceedings in Hong Kong courts to recover a sum of approximately A$65 million allegedly misappropriated by one of its senior staff who has since been charged with theft. This matter involves a complex white collar crime cross-border with assets to be traced in various jurisdictions, including Australia and potentially Macau.
OUR APPROACH: HDY conducted analysis on the available evidence and advised counsel in Hong Kong on the Australian position pertaining to a range of legal and strategic issues to assist with the civil claim commenced in Hong Kong. This included applications for freezing orders, lodgement of caveats, applications for Norwich Pharmacal discovery and enforcement of foreign judgments.
NB: Hyundai Merchant Marine (Hong Kong) Limited is a subsidiary of a worldwide logistics company based in South Korea and listed on Korea Exchange.