Recent challenging economic conditions in China are putting many PRC companies in distress.
This puts offshore joint venture partners and private credit lenders at risk, potentially having to attempt a difficult recovery by taking over PRC projects, companies or assets.
A new Chinese company law may give investors an upper hand by strengthening their information rights, which when combined with a multijurisdictional strategy allow a more effective takeover.
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.
