Hong Kong court sanctions guarantor’s scheme, ditches deed of contribution requirement
Mr Justice Harris said there was no need for a deed of contribution to establish “ricochet” claims between borrower and guarantor, to discharge a third-party borrower’s debts
A Hong Kong court has sanctioned a guarantor’s scheme of arrangement for the first time, noting that it preferred the Singaporean approach to guarantor’s schemes over the English one, which usually requires a deed of contribution to establish “ricochet” claims between borrower and guarantor to discharge the third-party borrower’s debts.
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