Legal Analysis: Sunac Scheme Provides Guidance Around Sanction Considerations; US Bankruptcy Court Queries Sunac’s COMI Under Ch15 Recognition, Supplemental Declaration Filed to Bolster Hong Kong COMI Argument 

Reorg Asia Highlights: The Hong Kong Court has sanctioned Sunac China Holdings Limited’s, or Sunac’s, scheme of arrangement. Sunac has subsequently sought recognition of the scheme in the U.S. under Chapter 15 given its U.S. law governed debt; U.S. Bankruptcy Court for the Southern District of New York has queried whether Sunac’s principal place of business is in Hong Kong, rather than Mainland China; and In response, Sunac has filed a supplemental declaration in the Chapter 15 proceedings supporting its contention that its center of main interest, or COMI, is in Hong Kong. Relevant Documents:Hong Kong Scheme DecisionNew York Supplemental Declaration The Hong Kong Court has sanctioned Sunac’s scheme of arrangement to facilitate its restructuring terms. In its written decision, the Hong Kong Court provides useful guidance around the factors it will consider when taking on its sanctioning role, including the formulation of creditor classes and whether or not the scheme would be effective in different jurisdictions. Subsequent to the Hong Kong sanction ruling, Sunac applied for Chapter 15 recognition of the Hong Kong scheme in the U.S. Bankruptcy Court for the Southern District of New York. During the recognition hearing, the U.S. Bankruptcy Court queried whether Sunac’s principal place[...]