Since 2022, the Hong Kong courts have held that orders for recognition and assistance will be granted principally in respect of foreign insolvency proceedings opened in the jurisdiction where a company’s centre of main interests (COMI) is located. Otherwise, an application for recognition and assistance in respect of foreign insolvency proceedings opened in the place of incorporation will normally be declined unless one of the two carveouts are satisfied: (1) the recognition and assistance is limited to recognition of a liquidator’s authority to represent a company and orders incidental to that authority (known as “managerial assistance”); or (2) the recognition and assistance is required “as a matter of practicality” (see 

 [2024] HKCFI 3000, the Court of First Instance (

DHCJ Le Pichon) considered the extent to which the carveouts were satisfied in a case involving recognition and assistance of foreign insolvency proceedings opened in a company’s place of incorporation.

There, Bull’s-Eye Ltd (“Company”), a company incorporated in the BVI, was wound-up by the BVI Court on insolvency grounds. The Joint Liquidators (appointed by the BVI Court) subsequently sought and obtained an order from the HK Court recognising their appointment and the Company’s insolvent liquidation as well as assistance to 

 take control of the Company’s assets in Hong Kong.

Notwithstanding that the foreign insolvency proceedings were opened in the Company’s place of incorporation rather than its COMI, DHCJ Le Pichon considered that there was “no doubt” that the carveouts applied and the requirements for recognition and assistance were satisfied (§30).

This decision therefore confirms that, notwithstanding 

, the fact that foreign insolvency proceedings are opened in a company’s place of incorporation (as opposed to its COMI) is no absolute bar to recognition and assistance. Rather, Hong Kong courts are readily prepared to apply the carveouts in appropriate cases and to grant recognition and assistance to enable foreign insolvency officeholders appointed in the place of incorporation to deal with assets located in Hong Kong.

, instructed by Tanner De Witt, acted for the Joint Liquidators.

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No COMI, No Problem: Recognition Order Granted in respect of Foreign Insolvency Proceedings Commenced in Company’s Place of Incorporation

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