Restructuring and Insolvency Services

A financial review provides an accurate, up-to-date assessment of a company’s financial position, enabling management, advisors, and creditors to make informed decisions. The process evaluates profitability, cash flow, working capital needs, and management’s ability to navigate financial challenges.

Lenders often request financial reviews when borrowers breach lending covenants or seek additional facilities—either to support growth plans or address short-term cash flow pressures and operational losses. Our reviews deliver the clarity and insight needed to guide recovery strategies and maintain stakeholder confidence.

Corporate Recovery involves strategies and processes to help distressed companies regain stability for the benefit of all stakeholders—including creditors, shareholders, employees, suppliers, customers, and contractors.

Every struggling company faces a unique set of challenges, requiring advisors to apply tailored strategies and specialised skills to address its specific circumstances. Our focus is on restoring viability, protecting value, and creating the best possible outcome for all parties involved.

We act as Provisional Liquidators or Liquidators for insolvent companies in both compulsory and voluntary liquidation scenarios.

In compulsory liquidation, we are appointed by the Court when a creditor is concerned that company assets are being dissipated, or when the company seeks protection from creditors while pursuing restructuring.

In voluntary liquidation, we are appointed by directors to safeguard assets and protect the interests of creditors and stakeholders, ensuring that assets are preserved and not improperly disposed of.

Our role is to act swiftly and decisively to protect value, maintain transparency, and ensure compliance with all statutory obligations.

When appointed by creditors, our role as Liquidators is to:

• Realise company assets for the best possible value;

• Investigate the company’s affairs and, where appropriate, commence legal proceedings to protect creditor interests and maximise asset recovery; and

• Distribute surplus proceeds to creditors in accordance with the Companies Ordinance.

Our team is skilled in rapidly assessing a company’s financial position, identifying the causes of distress, and providing clear, timely advice on available options, likely outcomes, and the impact of management decisions on all stakeholders. This ensures every step of the liquidation process is handled professionally, transparently, and in the creditors’ best interests.

A receiver may be appointed in various circumstances to take control of and protect a company’s assets. In Hong Kong, a private receiver is typically appointed by a creditor holding a legal charge over the company’s assets, with the objective of realising those assets to repay the debt.

By contrast, a Court-appointed receiver is usually tasked with safeguarding assets during ongoing legal proceedings or locating and recovering misappropriated assets. In both cases, the receiver’s role is to act independently, efficiently, and in accordance with legal obligations to protect stakeholder interests and maximise asset value.

We are one of the few corporate advisory firms with the expertise to advise insolvent individuals on the implications of bankruptcy and the operation of the Individual Voluntary Arrangement (IVA) procedure.

Our experience is particularly valuable for directors of insolvent companies who have provided personal guarantees to creditors. In such cases, we assess personal exposure alongside the company’s restructuring plan, ensuring that both corporate and personal financial risks are addressed to achieve the most favourable outcome for all parties.