Insights

• Many Korean and other Asian investors have poured money into the U.S. commercial real estate market, whether investing directly in property or through commercial mortgage-backed securities (CMBS) or real estate investment trusts (REITs).
• The pandemic, the fastest interest rate hike in decades and a drawback from risk-taking by U.S. regional banks in the wake of bank failures have dealt grievous blows to the market.
• This rapidly changing environment is leaving many investors vulnerable to mortgage defaults and lower valuations on their investments.

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• Chinese companies with significant intellectual property (“IP”) assets continue to see their bottom lines threatened amid increased competition with the U.S. and other Western companies.
• Kobre & Kim's ongoing commitment to its mainland China presence (recently featured in Law360) is critical to its ability to effectively manage cross-border IP disputes initiated outside China by Chinese companies in industries such as biotechnology, artificial intelligence, and consumer goods.

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• 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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• In Chapter 11 bankruptcy cases where the chances of recovery seem slim, global unsecured creditors may have to get creative and look outside the U.S. to improve their prospects.
• Assets in the People’s Republic of China (PRC) – the world’s second largest economy – offers a surprising source of asset recovery opportunities.
• We explain how creditors can unlock value in China and maximize their recovery.

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• Many Brazilian and Latin American companies that borrow in US dollars are facing a growing mountain of debt.
• As international creditors eye a shrinking pool of capital available for repayment, US dollar noteholders may be left at the back of the line relative to onshore creditors.
• However, there are a number of options at USD noteholders' disposal that could improve their position and increases their chances of recovery.

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• 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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• More investors are taking their disputes against sovereign states and entities to arbitration and judicial forums.
• However, demanding payment of a defaulted debt, judgment or award does not always lead to the sovereign paying up.
• We explore aggressive non-traditional strategies investors should deploy to ensure a sovereign debtor agrees to a settlement.

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• Relations between China and the U.S. will likely remain tense for the foreseeable future, as evidenced by the recent U.S. law mandating TikTok be divested or face a ban.
• Companies and individuals with perceived Chinese associations – including in Greater China, Southeast Asia and the wider region – could be at risk of invasive and politically motivated government enforcement actions.
• Those at risk can take several proactive steps to protect their assets, reputation and liberty.

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• 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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• Bad-faith opponents often use elaborate mechanisms to publicly discredit high-net-worth individuals.
• Misinformation can spread across borders rapidly, resulting in reputational harm across borders and languages.
• HNWIs in contentious situations should take a robust and active approach with a carefully calibrated mix of legal and communications interventions.

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• 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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• 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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• 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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• New rules proposed by the U.S. Financial Crimes Enforcement Network (FinCEN) would extend U.S. anti-money laundering program requirements to investment advisors.
• This could become the latest move by U.S. authorities to scrutinize the assets and transactions of ultra-high-net-worth individuals, including those outside the U.S.
• At-risk individuals and their advisors should take proactive steps to protect their legitimate interests.

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• Opportunities for activist investors in Korea are expanding, but as an ongoing dispute involving LG shows, corporate succession disputes involving chaebols can be a source of risk.
• These family struggles can lead to attempts at corporate changes that conflict with the interests of minority shareholders.
• Investors and activists should understand the risks and their options by working with international counsel to protect their rights.

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