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Client Alert October 25, 2024

Decision Widens Door for Bondholders to Enforce

  • A Kobre & Kim client received a recent ruling by the New York Supreme Court that eases global bondholders’ ability to monetize claims.
  • Justice Joel Cohen found Zhu Xinli, the sole director of Huiyuan Juice subsidiary Huiyuan Beijing, personally liable for more than US $114 million. 
  • The decision means that bondholders increasingly have monetization options against recalcitrant debtors, including the ability to collect at par from well-heeled decision-makers when the primary obligors may be effectively insolvent, judgment-proof, or even already in bankruptcy proceedings.

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Client Alert September 12, 2024

Non-U.S. Creditors Can Crack Delaware’s Notoriously Tough Trusts

  • Delaware’s strong asset protection laws have long made the U.S. state a destination of choice for individuals and entities worldwide looking to set up a trust.
  • International creditors looking to recover assets may feel that pursuing a debtor in Delaware is insurmountable.
  • However, it is indeed possible to crack Delaware’s notoriously tough trusts by adopting an aggressive multijurisdictional strategy.

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Client Alert June 6, 2024

New York Glory Health Decision Makes Enforcement of Bonds Issued by Cayman and BVI Companies Much Easier

  • The ability of bondholders to sue bond issuers to enforce their rights without going through the cumbersome process of instructing a bond trustee has long been in question.
  • However, an important ruling in New York court, obtained by Kobre & Kim on behalf of a group of international bondholders, took the first step in establishing standing.
  • This decision potentially removes key barriers to enforcement in key offshore jurisdictions such as Cayman and the British Virgin Islands (BVI), as well as Hong Kong.

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Client Alert May 16, 2024

Precedent-Setting Win in Dubai Opens Doors for Global Creditors to Fight Fraudulent Conveyance in the Middle East

  • International investors and other claimants have long struggled to enforce cross-border claims in the United Arab Emirates (UAE) and the wider Middle East.
  • Debtors frequently deploy tactics such as fraudulent conveyance to transfer their assets out of reach.
  • A recent precedent-setting decision in Dubai’s High Court, secured by Kobre & Kim and local co-counsel, shows another avenue for global creditors to battle recalcitrant debtors and increase their chances of a swift and significant recovery on their cross-border claims.

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Client Alert April 25, 2024

New Rights for Private Equity Investors and Private Credit Lenders Enhance Speed of Takeover of PRC Project Companies

  • 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.

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Client Alert April 11, 2024

Cross-Border Tools to Aid Latin American Parties in Disputes with PRC Companies

  • Deals and partnerships between Latin American and Chinese companies are growing as economic ties between the two regions deepen.
  • However, unique risks are involved if a dispute arises with the Chinese company – the Chinese legal system could create barriers to payment, even with an award or judgment in hand.
  • Latin American companies and investors should consider cross-border strategies to increase their leverage.

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Client Alert April 4, 2024

New York Court Opens Path for Global Bondholders to Bring Unilateral Claims Against Recalcitrant Bond Issuers

  • The ability of bondholders to sue bond issuers to enforce their rights without going through the cumbersome process of instructing a bond trustee has long been in question.
  • However, an important ruling in New York court, obtained by Kobre & Kim on behalf of a group of international bondholders, took the first step in establishing standing.
  • With New York law governing a vast amount of emerging market company debt, this could allow global bondholders to dramatically speed up creditor response times.

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Client Alert March 28, 2024

How U.S. Litigants Can Seek Information Disclosure in Key English Common Law Jurisdictions

  • U.S. litigators will be familiar with the powers of U.S. courts to gather discovery, including through letters rogatory and Section 1782 applications.
  • Less well known are powerful non-U.S. discovery tools that can provide the ever-growing need for information from multiple jurisdictions.
  • One such example, the Norwich Pharmacal order, can offer litigants access to third-party information in key English common law jurisdictions around the world.

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Client Alert February 15, 2024

Non-Traditional Sovereign Debt Defaults Recovery Strategies for International Bondholders

  • Sovereign defaults are increasing after recent years of post-pandemic spending, geopolitical risk and climate change.
  • This has created opportunities for distressed investors experienced in enforcing against sovereigns.
  • Investors can improve the value of their claims by deploying strategies targeting unconventional vulnerabilities around the world.

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Client Alert February 8, 2024

Creative Approaches for Investors and Joint Venture Partners to Leverage New PRC Company Law to Take Control of Onshore Chinese Companies

  • 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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Client Alert February 1, 2024

Cracking Delaware’s Notoriously Tough Trusts

  • 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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Client Alert January 18, 2024

New Pathways for International Creditors to Fight Fraudulent Conveyance in Dubai

  • 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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Client Alert November 9, 2023

Middle Eastern Investors Have Options to Protect Their Investments in China

  • Investments from the Middle East into Mainland China are growing recently as many see increasing opportunities for returns.
  • However, there are risks that may materialize if investors become embroiled in a global dispute with Chinese companies.
  • Investors should consider ways to increase their leverage and expand their options, including by bringing disputes directly into China through Hong Kong.

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Client Alert October 26, 2023

International Creditors Can Crack Delaware's Notoriously Tough Trusts

  • 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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Client Alert October 12, 2023

Cross-Border Strategies to Accelerate Non-Performing Loans Recoveries in Korea

  • Korean banks are holding an increasing amount of non-performing loans, putting their financial health at risk.
  • For many with large portfolios exposed to cross-border unsecured debt and loans to high-yield borrowers, sale and write downs may not be optimal.
  • A cross-border strategy to monetize their claims could offer a superior alternative.

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