17 Jul 2020

US$14.5 billion debt restructuring of Shanghai Huaxin Group

Partners Chua Beng Chye, Raelene Pereira, V Bala and Yu Zheng from Rajah & Tann Singapore are acting for Shanghai Huaxin Group (Hongkong) Limited (In Liquidation) (“Shanghai Huaxin”), a wholly-owned subsidiary of CEFC Shanghai International Group Ltd., in its claims against various entities for the recovery of receivables, which form a substantial component of the company’ assets. The total value of debt being restructured/assets in liquidation is approximately US$14.5 billion; value of receivables is approximately US$1.3 billion. This is a very significant case demonstrating the closer collaboration between the Mainland and Hong Kong judicial authorities in relation to insolvency matters. The progress of this cross-border recognition and cooperation is highly anticipated as it may promote a unitary approach to cross-border insolvencies between the Mainland and Hong Kong.