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| In a recent meeting of the Task Force on Economic Challenges (TFEC), Chief Executive Donald Tsang expressed his support for the resuscitation of legislative efforts aimed at creating a comprehensive corporate rescue plan in the city. At present, the region’s only rescue mechanism lies in section 166 of the Companies Ordinance, a scheme of arrangement criticised as unduly complex and under which hurdles exist to obtaining moratoriums against creditors’ actions during the rescue period. For companies facing short-term crises, of which the number is certain to rise in current circumstances, the ability to restructure is significantly hampered by the current regime. Supporters of the Chief Executive’s comments have pointed to the Australian statutory framework as a source of guidance. The TFEC was formed following Tsang’s promise in his 2008-09 Policy Address to establish and chair a body to continually monitor and assess the impact of the financial tsunami on local and global markets. |
