Podcast - Administrator for PUFG rejects keepwell arrangement claims: What does this mean for offshore creditors with keepwell deeds?

In this podcast, banking partner Cindy Lo, speaks with Agnes Tsang, who has extensive experience in advising issuers and underwriters on debt capital markets transactions, along with Tim Beech, head of our APAC Corporate Trust & Agency team, and Viola Jing from our APAC restructuring & recovery group. They discuss the implications of this significant decision and enforcement options for offshore creditors who find themselves in similar situations. The podcast covers the following issues:

• The emergence of keepwell structures and their use by Mainland Chinese companies
• A closer look at the PUFG matter based on publicly available information
• Implications for offshore investors in bonds that benefit from keepwell deeds provided by onshore Mainland Chinese parent companies
• Possible enforcement options available to offshore creditors
• A closer look at the CEFC Shanghai International Group Limited (CEFC) case and how the decision currently being considered by the Shanghai Intermediate People’s Court could affect the enforcement of keepwell structures. Earlier this year, the Hong Kong Court of First Instance issued a decision on recognition of appointment of administrators of CEFC in the Mainland. This is the first application in Hong Kong made by Mainland administrators for recognition of their appointment and judicial assistance at common law.