“Deacons picks up a significant volume of local work by dint of the firm's deeply entrenched accountancy relationships and strong ties with financial institutions in the region (including funds and banks).”
Legal 500 Asia-Pacific
A leader in restructuring and insolvency in Hong Kong and the PRC
From initial discussions to post-completion, we offer first-class legal advice with a focus on practical solutions.
Most companies will experience financial challenges at some stage, whether through changes in the economic climate, increasing competition, disruptive technologies, or internal pressures, such as rapid expansion and cash flow issues.
If your business is experiencing difficulties and needs advice on its options, Deacons' insolvency and restructuring team can help. We are often asked to come into businesses as ‘corporate doctors’, to diagnose the causes of problems at an early stage and prescribe effective solutions.
Wherever possible, we aim to promote a constructive dialogue with shareholders and other stakeholders, and negotiate an outcome that benefits all sides. This could involve, for example, rescheduling or refinancing debt, restructuring equity, reorganising the company or disposing of assets.
As a last resort, we advise companies, as well as their creditors and stakeholders, on insolvency procedures, and we have extensive experience of acting for these parties, and also for liquidators and other office holders, in contentious insolvency matters.
Key types of work, include:
- Rescue and restructuring: Deacons has extensive experience of advising accountants, banks, other financial institutions and borrowers on every aspect of rescue and restructuring, including refinancing, debt rescheduling, sale and lease back, distressed debt issues, court sanctioned arrangements and work-outs.
- Rescue financing: We advise on the complex finance and security issues that arise in relation to the financing of a rescue bid in a liquidation or provisional liquidation situation.
- Insolvency: We regularly advise banks, financial institutions and office holders on all types of formal insolvency procedures, including liquidations, provisional liquidations, receiverships and administrations in Hong Kong and overseas. We also advise trustees on bankruptcy issues and individuals facing financial difficulty.
- Schemes of arrangement: We advise on the drafting and sanctioning of schemes of arrangement and have successfully completed schemes in various sectors and contexts, including insurance and including as part of a rescue under provisional liquidation. We have advised on the complex issues that can arise as regards classes of creditors in the context of a scheme.
- Contentious insolvency: Advising on contentious insolvency matters requires detailed knowledge of both this complex area of the law and litigation. Our highly-regarded team provide all of the practical, strategic advice and litigation support that clients require.
- Enforcing and realising security: Deacons has extensive experience in handling the commercial and legal issues that arise when looking to take, improve and enforce security and other rights, both in Hong Kong and overseas.
- Distressed debt: We advise on the acquisition, disposal and enforcement of non-performing loans, both on an individual and a portfolio basis.
- PRC insolvency: We have a great deal of experience of insolvency and debt-restructuring issues in the PRC, including restructuring of loans advanced to PRC borrowers (including FIEs and SOEs) and on various matters relating to PRC insolvent companies.
- Creditor services: We offer a wide range of creditor services, including advice on making claims, submitting proofs and arranging attendance at creditors' meetings in Hong Kong, the PRC and throughout the Asia Pacific region. We also provide guidance on the procedure to be followed at these meetings, proxy voting and dividend recovery.
- Corporate rescue services: Seeking professional advice early can make all the difference and help a company facing financial challenges avoid insolvency. Working closely with accountants and financiers, we advise on all aspects of turnaround such as cash-flow management, refinancing, restructuring, debt factoring and other rescue strategies.
- Advising directors: We regularly advise directors on their duties and liabilities, including avoiding disqualification and potential liability for fraudulent trading and other statutory offences.
- Advising purchasers: We advise purchasers acquiring businesses and assets from receivers, liquidators and other office holders and on the acquisition of distressed assets. Time is of the essence in these transactions and we respond quickly, giving the best practical and commercial advice.
- Insurance insolvency: The insolvency of an insurance company raises unique issues. Our team has experience of advising on all aspects of insurance insolvency, including schemes of arrangement, runoff and handling 'live' policyholders.
- Debt collection: To enable our clients to recover their debts rapidly and cost effectively we offer a fully-automated debt collection service. Clients receive regular status reports showing daily activity and summaries of each matter.
Please take a look at our insolvency and restructuring pages for more information on the range of work we undertake. And if you would like more information on how we can help you, please feel free to get in touch.