 were recently invited to deliver a seminar at Clyde & Co titled "Cross-Border Elements in Commercial Disputes".

The session drew to a close with a lively Q&A. A heartfelt thanks to Clyde & Co for the opportunity to collaborate and their hospitality. 

New guidance on the relationship between arbitration and winding-up in the context of cross-border cases has been provided in 

 [2025] HKCFI 2417, where Recorder William Wong SC addressed an ‘

’ question in one of the very first applications to restrain foreign winding-up proceedings in favour of arbitration before the Hong Kong courts.

Sian Participation Corp v Halimeda International

, Hong Kong courts and those in England (and offshore jurisdictions like the Cayman Islands) have diverged on the threshold for staying winding-up proceedings in favour of arbitration. Under Hong Kong law, winding-up proceedings will be stayed in favour of arbitration unless there is abuse. In contrast, English law requires debtors to show a 

 dispute – a standard seen as more creditor-friendly.

This divergence raises an important question: When will Hong Kong courts restrain winding-up proceedings in foreign jurisdictions that follow the 

 approach in favour of Hong Kong arbitration?

Recorder William Wong SC held that while Hong Kong law applied, the relevant arbitration clause required the Court to decide whether Cayman winding-up proceedings would amount to a ‘

That question, in turn, depended on how Cayman courts viewed their own winding-up proceedings. On this, 

made clear that Cayman law does not regard its own winding-up orders as finally resolving disputes between the parties. Recorder William Wong SC likened this issue to whether a foreign judgment creates an issue estoppel in Hong Kong, which depends on how the foreign court characterises its own judgments.

On that basis, the Recorder concluded that the intended Cayman winding-up proceedings were not brought in breach of the arbitration clause. The injunction was thus dismissed.

, instructed by DLA Piper Hong Kong, for the Defendant.

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