Insights

• Unfavorable economic conditions in China are putting many offshore companies in distress.
• In a worst-case scenario, joint venture partners and private credit lenders may have to attempt to take over onshore projects, companies and assets.
• A new Chinese company law coming into effect on July 2024 could smoot this path to recover – including by making it easier to replace legal representatives.

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• Several features make Delaware’s trust law attractive for debtors to hold assets in the jurisdiction.
• This also means creditors often struggle when attempting to access the trusts to recover assets.
• By deploying aggressive, multijurisdictional strategies, creditors may be able to crack even Delaware’s notoriously tough trusts.

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• Free ports enable ultra-high-net-worth individuals to store, trade and transport assets, including artwork, with benefits of security, favorable tax and customs regulations and, often, privacy.
• However, free ports cannot mitigate threats to assets when authorities make allegations of misconduct and issue freezing or seizure orders.
• With a free port in Dubai under construction, UHNWIs and their advisors should contemplate proactive steps to protect their global portfolios.

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• International creditors are seeing more opportunities in the United Arab Emirates and wider Middle East as courts continue to signal openness to recognizing and enforcing overseas judgments.
• This includes overcoming a fraudulent conveyance, as a UAE court recently decided in what may be an unprecedented judgment in favor of a judgment holder represented by Kobre & Kim.
• The judgment demonstrates that there are a rapidly growing number of creditor tools available in the region to combat recalcitrant debtors.

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• A new law criminalizing the demanding or receipt of payments from U.S. individuals or entities gives the U.S. Department of Justice new tools to extend its targeting of non-U.S. individuals in corruption investigations.
• This puts politically connected individuals at risk of becoming subject to aggressive U.S. investigations, initiated by politically motivated domestic rivals.
• At-risk individuals should take proactive steps to protect their reputations, assets and liberty.

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• The United Kingdom is pushing its overseas territories, including offshore centers such as the British Virgin Islands and Cayman Islands, to publicly identify ultimate beneficial owners of corporate structures.
• This loss of privacy for ultra-high-net-worth individuals with legitimate needs could see their reputations and interests threatened by unwarranted scrutiny.
• Proper preparation can help individuals and their advisors to not only limit potential damage, but also allow them to react expediently if a crisis arises.

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• The new administration of Javier Milei in Argentina marks a shift away from the political establishment, with his promises to purge the “political caste.”
• Politically exposed persons may be at risk – new authorities around the world often engage in politically motivated investigations.
• At-risk individuals and businesses should take proactive steps to protect their assets, liberty and reputation.

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• Russian individuals and companies with legitimate global interests still need to litigate their disputes in overseas jurisdictions.
• Despite the current state of relations between the United States and Russia, U.S. courts are still giving Russian litigants a fair hearing.
• We outline recent examples of successes that demonstrate how Russian litigants can still access powerful U.S. legal tools.

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• Brazil is seeking more investment from China, with almost half of China’s investments in South America being in Brazil.
• However, the recent wave of insolvencies in Brazil could threaten these investments, particularly if fraud is uncovered, leaving investors to navigate the complex Brazilian insolvency landscape.
• By undertaking a more assertive, multijurisdictional approach, combined with new insolvency tools in Brazil, investors can seek to gain the upper hand.

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