Walkers acts in BVI Scheme of Arrangement in a Cross Border Restructuring

Walkers have successfully acted for a company in obtaining an Order sanctioning a statutory Scheme of Arrangement (a "Scheme") to restructure debt issued in the international capital markets by a BVI company with operating subsidiaries predominantly in the PRC.

The BVI Commercial Court approved a BVI Scheme in a cross border restructuring involving both a parallel Scheme in Hong Kong and a Chapter 15 proceeding in the United States. A Scheme is a useful statutory restructuring device which allows a company to reach a compromise with its members or creditors. Very few Schemes have been successfully pursued in the BVI. This matter involved the most sophisticated Scheme to be sanctioned in the BVI to date. This Scheme represents one part of a multi-jurisdictional restructuring utilising BVI, Hong Kong and US statutory tools to bring about the restructuring of the debt of a financially and geographically diverse corporate group. The parent (BVI company) is listed on the Hong Kong stock exchange and had issued debt (governed by New York law) on the Singapore stock exchange. It is a good example of how a combination of inter-jurisdictional proceedings can be used to achieve a restructuring of complex and cross-border financing arrangements governed by different laws and issued to creditors across the globe. Walkers' lawyers from the firm's Asian and BVI offices worked together with leading onshore counsel from the UK, Hong Kong, the United States and the PRC to effect the restructuring.

Partner Sandie Corbett and associate Jennifer Fox based in Walkers' BVI office and partner Robert Foote and counsel Joanne Collett based in Walkers' Singapore and Hong Kong offices respectively acted in this matter.