International Insolvency Institute NextGen Program Insolvency and restructuring in the time of Covid-19 June 4, 2020 Focus on ASIA PROGRAM Opening remarks: Annika Wolf, Executive Director of the International Insolvency Institute Introduction of the NexGen webinar project Carlo Ghia , Ghia Law Firm - Italy Work Session moderated by Carlo Ghia: Jason Corbett – Silk Legal - Thailand Shuai Guo - PhD candidate at Leiden Law School - China Ming Dong - JunHE LLP - China Aurelio Gurrea Martinez - Singapur Management University Q & A – instructions for the attendees: if you want to ask questions during the session, you can use the «Q & A» section of Zoom. The moderator will pose the questions at the end of the recorded session
The State of Blockchain during COVID-19: Dr. Jason Corbett Managing Partner, Silk Legal 1
Bankruptcy Proceedings in Thailand Limitations of Thailand’s Bankruptcy Regulations Thailand’s bankruptcy proceedings are governed by the Bankruptcy Act (No. 7) B.E. 2547 (2004). Thailand uses a territorial approach when handling cross- Generally-speaking, a distinction is made between secured border matters and does not accept rulings from other jurisdictions – although these will be accepted by courts creditors and unsecured creditors where the former is given as evidence. priority. So far, the Thai government has not made any Thai courts assign an official receiver (who functions as an announcements regarding the possibility of amendments administrator) that is responsible for managing the debtor’s to these regulations in response to the COVID-19 pandemic which may be problematic for estates that affair, specifically those concerned with the collection of involve foreign creditors. assets that may be used to repay debts. Given the lack of mechanisms that facilitate cross-border Once the official receiver seizes control of the debtor’s assets, insolvency matters, the current regulations may prolong, as order must be made publicly in the Royal Thai Gazette and complicate, or jeopardize restructuring efforts. a widely circulated publication. 2
Contextualizing Blockchain for COVID-19 Advocating for What problems can blockchain solve? connectivity and Providing ways to share immutable data without compromising privacy. transparency Ensuring efficiency in keeping track of COVID-19 infections. The pandemic has brought to light the general lack Building resilience in terms of supply chain of connectivity and data exchange to respond to a to combat the economic effects of the global outbreak. pandemic. Key players in the blockchain sector state that future Connecting various shareholders to resiliency is contingent on creating transparent and essential services when needed. inter-operable networks. 3
Contact Tracing The Giants make their move What is Contact Tracing? In April, Google and Apple unveiled a two-phase exposure The World Health Organization defines contact notification solution that uses Bluetooth systems on mobile devices to assist in contact tracing efforts. tracing as the process of identifying, assessing, and managing people who have been exposed to a Through this, users’ devices will regularly send out beacons that disease to avoid transmission to others. confirm whether a person had prior contact with COVID-19. These beacons are made of a string of random numbers that In the context of COVID-19, contact tracing involves are not tied to a person’s identity in order to preserve their privacy. identifying people who may have been exposed to Google and Apple have released APIs that enable contact the virus and conducting daily updates for 14 days tracing apps from public health bodies to work on Android and from the last point of exposure. iOS devices. The second phase of the joint project will involve introducing the initiative at the operating system level to ensure adoption among users. The latest iOS 13.5 update on iOS devices has implemented this capability. 4
Immunity Passports COVID-19 secured health passport French data leader OpenHealth, along with EU blockchain-based trust service Guardtime and SICPA, have formed a consortium to develop a system to monitor the population’s state of immunity. The use of blockchain will ensure the accuracy of health data to assist in managing the deconfinement process while preserving the privacy of data holders. Necessary after the pandemic? After the pandemic, authorities around the world may use immunity passports to permit those who were infected to go back to work or travel. *Source: SICPA (https://www.sicpa.com/news/covid-19-health-passport- secured-blockchain-enable-deconfinement) 5
Applications around the world In the context of COVID- 19 Identification system Digital channels for Providing government Information services Singapore’s Ministry of Health developed the TraceTogether app as a community-driven approach to Italian news agency, using EY UAE’s Ministry of Community enabling proximity information Advisory’s blockchain expertise, Development has started using exchange among participating developed an application that blockchain systems to digitally devices. The app aims to map out verifies sources of information authenticate official documents and the activities of infected individuals about COVID-19 in order to curb certifications. This was done in order to to help health officials serve them the spread of fake news which could streamline services and reduce the need better. exacerbate the contagion. to visit government offices. 6
Stablecoins Stablecoins fall under 3 primary categories: Fiat-collateralized stablecoins Stablecoins that are typically pegged to fiat currencies. An example of this is USDC which is Stablecoins are cryptocurrencies that are pegged to pegged to the US Dollar. real-life assets, particularly major currencies like the US Dollar and commodities such as gold or oil. Crypto-collateralized stablecoins Stablecoins overcollateralized against loaned These cryptocurrencies have surged in popularity assets. An example includes MakerDAO. due to their relative stability in comparison to other cryptocurrencies. Non-collateralized stablecoins These are neither centralized or over- collateralized and are instead reliant on contractions and expansions on the token supply based on an algorithm. 7
Re Responses to COVID-19 in China Presentation at NextGen/III Webinars: Insolvency and Restructuring at the time of COVID-19 Shuai Guo 郭 帅 | Home 4 June 2020 Company Law/Hazelhoff Centre for Financial Law Discover theworld at Leiden University 1
COVID-19 cases in China Source: Worldometer Discover theworld at Leiden University 2
Economic activities in China Source: National Bureau of Statistics of China Discover theworld at Leiden University 3
Central Government Measures Employment Protection of employees • Protection from layoff • Minimum wage • Choice to work from work Safe and healthy working • environment Protection of business • Companies can negotiate with employees to reduce their salaries Business Tax incentives • Tax reduction Tax exemption • • Tax refund • (rent/lease exemption) Finance • Direct capital injunction (to commercial banks) • Extension of repayment periods Discover theworld at Leiden University 4
Courts: SPC’s Representative Cases • 1: Courts speed up the hearing process. • 2: Courts resolve disputes related to essential services. • 3: Courts act as mediators for parties to reach a settlement agreement. • 4: Courts facilitate restructuring proceedings. Discover theworld at Leiden University 5
Thank you! s.guo@law.leidenuniv.nl Discover theworld at Leiden University 6
Measures from Chinese Courts Dealing With Covid-19 ----Insolvency Scenario Ming Dong Partner of JunHe LLP
Major Measures • Issue Guiding Opinions Concerning the Proper Trial of Civil Cases Involving Covid-19 by Supreme People's Court Guiding resolving the debt crisis by out-of-court restructuring Carefully determining the cause of bankruptcy according to law Extending the statutory periods • Issue Notice of Strengthening and Regulating the Online Litigation Work by Supreme People's Court Online filing cases • Issue Opinions on Promoting the Efficient Trial of Bankruptcy Cases by Supreme People's Court Hold creditors’ meetings through network 2 A fast trial mechanism for simple cases – 6 months
1. Guiding Opinions Concerning the Proper Trial of Civil Cases Involving Covid-19 • On 15th May, 2020, the Supreme People's Court issues Guiding Opinions on Several Issues Concerning the Proper Trial of Civil Cases Involving Covid-19 II , in which the third part specifically stipulates the trial of bankruptcy cases involving Covid-19. 3
1. Guiding Opinions Concerning the Proper Trial of Civil Cases Involving Covid-19 • Highlights: Guide creditors and the debtor to resolve debt crisis out of court. Determine the cause of bankruptcy according to law carefully. Extend the statutory period for submitting reorganization plan, creditors’ claim declarations, holding creditors’ meetings, holding a hearing etc. according to specific situations. Maintain to the maximum possible extent the capability of the debtor to continue its operation, give full play to the benefits of the financing of common benefits debt, and provide funding support for the debtor to 4 continue its operation.
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