Insights

• Global bond issuers looking to restructure their debt have often turned to English courts, relying on debtor-friendly rules such as the ability to cram down creditors.
• Two recent English court decision, however, are improving prospects for global bondholders.
• Creditors who are willing to take swift and forceful action against even the biggest players can see the greatest chances of success.

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• As a key economic center in the region, the United Arab Emirates (UAE) is increasingly the place where many international creditors go as they pursue their debtor’s assets.
• However, some recalcitrant debtors may try to transfer their assets away to avoid payment in a fraudulent transfer.
• Our team explores what strategies are available in the UAE to restore a creditor’s interests.

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• Debtor-friendly Delaware has strong asset protection laws that make it a destination of choice for global entities and individuals looking to hold their assets in a trust.
• This creates a headache for international creditors – recovering assets in a Delaware trust can seem like an insurmountable challenge.
• By adopting a creative, aggressive and multijurisdictional strategy, however, creditors can crack even Delaware’s notoriously tough trusts.

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• The United Arab Emirates (UAE) is becoming increasingly friendly to global judgment creditors looking to enforce their judgments.
• Recent developments signal increased receptivity to fast-tracking recognition and enforcement through reciprocity.
• We survey the landscape and look at how the country can form a crucial part of a worldwide enforcement campaign.

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• Minority shareholders have options to stand up to majority shareholders and directors, such as unfair prejudice claims or derivative actions.
• However, if these do not achieve the desired result, one more tool is available to exert pressure: a just and equitable winding up.
• We lay out how this tool can be applied in five key jurisdictions for corporate structures in Asia.

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• Minority shareholders may be surprised to learn that they have effective options when a director or other fiduciary has harmed the company.
• However, the situation may be complicated when structures cross borders, as many corporate structures in Asia do, including spreading offshore.
• Our Claim Monetization team explores how shareholders can deploy derivative actions in five key jurisdictions across Asia Pacific, the UK and the Caribbean as part of an effective cross-border strategy.

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• A Chinese court recently recognized a commercial judgment issued by the English High Court in a landmark judgment.
• China has also made it easier for Hong Kong arbitrations to be recognized and enforced in China, as well as opening the door to interim measures.
• Our Claim Monetization team analyzes what these developments mean to foreign judgment and award creditors looking for opportunities in a historically tricky jurisdiction.

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• Minority shareholders may have certain remedies available when they feel their rights have been unfairly prejudiced by the majority.
• However, the situation may be complicated when structures cross borders – typical corporate structures in Asia may spread across offshore and other key regions.
• Our Claim Monetization team lays out the basic parameters of the tools open to minority shareholders across five key jurisdictions.

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• Many parties, especially those based in Asia Pacific, soon discover that a recalcitrant debtor can frustrate enforcement of a hard-won arbitration award.
• In cross-border enforcement campaigns, the debtor may throw up obscure legal challenges to cause delays and distraction.
• A recent Kobre & Kim victory demonstrates how, through quick and strategic action, these distractions can be defeated and pressure can be maintained on the debtor.

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• Prices of Russian and other sovereign debt are falling as their economies buckle, presenting both opportunities and challenges for investors.
• Enforcing the debt against sovereign entities is already difficult, more so when sanctions are involved.
• As our Claim Monetization & Dilution team explains, non-traditional strategies may go further in putting maximum pressure on sovereigns and maximizing returns.

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• Mainland China is undergoing a wave of credit defaults, and creditors should use every tool available to maximize recovery.
• Keepwell agreements, a promise by a PRC onshore parent company to maintain an offshore debt issuer’s solvency, is one option for overseas enforcement.
• Creditors can use them to launch a multijurisdictional recovery campaign to drive up pressure on the debtor and reach a near-term settlement.

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• Offshore bondholders of distressed Chinese real estate companies often lack leverage in restructuring negotiations, with those companies’ assets located mostly in China.
• China Evergrande Group is just one of the many Chinese real estate companies teetering on default, with wide-ranging consequences.
• However, by taking deploying creative strategies and taking positions against competing stakeholders, activist bondholders can carve out a direct path to monetization.

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• When monetizing a claim against a debtor, the interplay between arbitration and insolvency is not only critical but also varies by jurisdiction.
• When considering a cross-border strategy, it is essential to understand how each jurisdiction interrelates with the others.
• Kobre & Kim’s global Claim Monetization and Dilution Team answers the critical questions on these intricacies for key jurisdictions in this comparative guide.

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• International creditors continue to face significant challenges when monetizing claims against debtors based in the People's Republic of China.
• Actions such as a standalone freezing injunction can be used in English common law jurisdictions to freeze assets that are held by innocent third parties.
• Injunctions and receiverships can be made without giving notice to the debtor, bestowing the "element of surprise."

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• For international creditors, monetizing claims against debtors located in the People’s Republic of China has proven difficult.
• The first challenge is finding where the assets are, specifically via offshore discovery.
• Time is of the essence, and “freezing” the money is next.

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