Webinar Replay — Past the turning point — Enforcing defaulted private credit loans onshore and offshore

When restructuring is no longer an option, creditors find themselves navigating a complex, cross-border enforcement landscape — particularly in situations involving arbitration clauses and a combination of onshore and offshore asset structures.

9fin and Kobre & Kim hosted this webinar on March 24 examining what happens when restructuring is no longer viable, and how creditors can pursue recovery through arbitration and global enforcement strategies.

Key themes discussed:

• Why many China- and Hong Kong-linked credit agreements include arbitration clauses (often specifying CIETAC, SCIA, or HKIAC)
• How arbitration awards — particularly those seated in Hong Kong — can be recognized and enforced across jurisdictions both in Mainland China and in offshore jurisdictions
• Common fact patterns involving debtors based in the US or Europe; governing law in New York or England; corporate holding structures in the BVI
• The mechanics and challenges of asset recovery, including turnover motions and receiverships involving offshore entities and assets
• Key differences in remedies and enforcement approaches between the US and the UK

The discussion also covered why arbitration is frequently chosen in these credit documents — not only for perceived cost efficiencies, but because arbitral awards can often be recognized and enforced both in Mainland China and offshore, supported by a sophisticated bench of arbitrators, particularly in leading forums such as the Hong Kong International Arbitration Centre.

The discussion was grounded in real-world experience, including a case study involving a private loan to a real estate company operating in China, funded by a family office. While the debtor was based in the US, its assets were located in Mainland China and Northern California and held through a web of BVI-incorporated entities, creating significant enforcement challenges and opportunities once the loan failed.

Speakers:

• Sheen Cao, Principal - Counsel, Ares Management
• John Han, Lawyer, Kobre & Kim
• Joanne Lau, Secretary-General, Hong Kong International Arbitration Centre
• Max Silverstein, Partner, Latham & Watkins
• Max Frumes, Global Head of Distressed & LevFin, 9fin (Moderator)