Shanghai Financial Court rules on a case involving offshore US dollar bond default related to real estate

According to the Shanghai Financial Court, recently, the Shanghai Financial Court adjudicated a default dispute involving offshore US dollar bonds issued by a certain Chinese real estate company. These types of bonds are often issued offshore by foreign companies, denominated in US dollars, but are closely related to domestic operating assets. Bondholders are often spread across the world and may also involve domestic financial institutions. After a bond default, offshore restructuring procedures may also be involved, and issues related to the applicable law are complex and difficult. After the case was accepted, the court examined several key issues, including non-exclusive jurisdiction agreements, the applicable law of foreign bonds, the structure of bond trustees, and the coordination of cross-border restructuring/bankruptcy procedures, and carefully clarified foreign law. Ultimately, the plaintiff filed a withdrawal of the lawsuit, and the case was closed.