Hainan Airlines case: Hong Kong recognizes the restructuring procedure in the mainland for the first time and why Hainan, which is not a pilot place, can stand out?

Writer | 宏Sir

Recently, the High Court of Hong Kong ordered on Re HNA Group Co Limited [2021] HKCFI 2897, approving the restructuring procedure of HNA Group in the Mainland and aiding the administrator in Hong Kong.

This is the very first approved and recognized case of PRC company’s restructuring in Hong Kong which is a landmark referring to the cross-border liquidation and restructuring between Hong Kong and PRC. As a result of that, the Hainan Airlines case is highly concerned.

The approval and recognition for Hainan Airlines case in Hong Kong is a major breakthrough for the procedure of bankruptcy between Hong Kong and PRC. This breakthrough illustrates two points. One point is that Hong Kong recognizes the bankruptcy procedure as well as restructuring procedure and the other point is that Hainan Airline case still be recognized even though Hainan is not a pilot place.

Under the newly developed approval and recognition regime, via above mentioned case, Hong Kong and PRC is hitting strides to make a real “mutual recognition” come true. It is anticipated that more and more cross-border bankruptcy procedures will benefit from it.

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