Claim Monetization & Dilution | Kobre & Kim — Disputes and Investigations

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.

Publications October 24, 2024

Global Restructuring Review: Court Holds PRC Chairman Liable for Over US $114 million in Favor of Kobre & Kim Client

As reported by Global Restructuring Review (GRR), the New York Supreme Court has ruled in favor of Kobre & Kim’s clients in the latest development in a major cross-border enforcement of bonds issued by Cayman and British Virgin Island companies.

Events October 17, 2024

Jason Kang, Jef Klazen and Jian Wu to Present at Seminar on Asset Protection for Chinese Companies and Individuals

Kobre & Kim’s Jason Kang, Jef Klazen and Jian Wu will present at a closed-door seminar focused on asset protection for Chinese clients held at Zhong Lun Law Firm’s Beijing office on October 22, organized by Zhong Lun Law Firm, Kobre & Kim and STEP China.

Client Alert October 10, 2024

Chinese Investors Can Use Cross-Border Tools to Stand Up to Sovereign Debtors

As geopolitical tensions pressure sovereign debt, more investors are taking their disputes against sovereign states and entities to arbitration and judicial forums. There is a world of difference between demanding payment of a defaulted debt, judgment, or award from a sovereign and seeing the sovereign pay up.
Meanwhile, Chinese private investors have become more prominent in sovereign-related investments through acquisitions, joint ventures, and infrastructure projects in Europe, Africa and Latin America.
Investors and other claimants should not be afraid to stand up to sovereign debtors with aggressive non-traditional strategies.

Events October 8, 2024

Kobre & Kim’s São Paulo Team Hosts São Paulo Arbitration Week Panel

Kobre & Kim’s São Paulo team, together with Prisma Capital, will host a breakfast panel during São Paulo Arbitration Week to discuss “Litigation Funding and Monetization of Arbitral Awards” on October 16.

Client Alert October 3, 2024

Cypriot Insolvencies: Leveraging Cross-Border Tools

As high energy prices and a wider global weakening economy threaten the shipping and maritime industries, many Cyprus-based companies face serious financial distress.
This poses a risk for creditors or those with deep financial ties to those companies as they increasingly default on their bonds and bilateral loans.
Creditors of Cypriot companies in those situations should focus on a multijurisdictional approach to achieve recovery.

Events October 2, 2024

Richard Clarke to Chair Panel at Asset Recovery Middle East: Fraud Litigation, Enforcement & Contentious Insolvency

Recent international judgments illustrate the complexity of navigating cross-border litigation involving sovereigns and state immunity. Kobre & Kim’s Richard Clarke will share his expertise in this area at Asset Recovery Middle East: Fraud Litigation, Enforcement & Contentious Insolvency, a conference taking place from October 13 to 15 in Dubai.

Events October 1, 2024

Kobre & Kim’s New York Team Hosts Intelligeast Chinese Lawyers

Kobre & Kim’s New York team including Daniel Saval, Jef Klazen, and Vincent Yiu will host a group of lawyers from Chinese law firms on October 2 as part of the Intelligeast’s Law Firm Leadership & Management Program.

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.

Events September 11, 2024

Kobre & Kim Hosts LatAm-Focused Asset Recovery Roundtable

Kobre & Kim’s New York and São Paulo teams, including Ana Frischtak, Daniel Saval, Donna Xu and Victor Clementino, hosted a Latin America asset recovery roundtable in New York on September 5, focused on U.S. Chapter 11 and 15 bankruptcy tools and beyond.

Publications August 8, 2024

Global Restructuring Review: Kobre & Kim Wins Second Bondholder Standing Decision

As reported by Global Restructuring Review (GRR), Kobre & Kim has now obtained a second New York Supreme Court ruling that a beneficial holder of a global note has legal standing to bring suit against Zhongrong International Resources directly, without the bond trustee. The court entered judgment in BFAM Asian Opportunities Master Fund’s favor for US $170 million.

Publications July 2, 2024

John Han and Geoffrey Derrick Discuss New York Glory Health Decision With INSOL World

Kobre & Kim’s John Han and Geoffrey Derrick sat down with INSOL World to discuss the decision and what it means for global bondholders moving forward.

Events June 26, 2024

Ana Frischtak and Sergio Aguiar Examine Corporate Restructuring Alternatives for Brazilian Companies on BTGGA Panel

Kobre & Kim’s Ana Frischtak and Sergio Aguiar joined the BTG Global Advisory Annual Conference in Sao Paulo, Brazil to discuss Brazil's evolving insolvency landscape on a panel titled “Navigating Corporate Restructuring: Comparative Analysis of Different Jurisdictions.” While discussing recent changes in Brazil’s insolvency legal regime, the panel explored the advantages and disadvantages faced by Brazilian companies looking to restructure in the U.S. or other jurisdictions such as the Cayman Islands and British Virgin Islands.

Accolades June 7, 2024

Kobre & Kim Earns Top Recognitions in Chambers USA New York Rankings

Kobre & Kim and several lawyers have been recognized in the latest Chambers USA rankings for New York, placing among the top firms and lawyers in several categories for commercial, white-collar and financial litigation.

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.