My HK company can’t pay suppliers—can I negotiate a scheme of arrangement to avoid winding-up?

In Hong Kong
Last Updated: Mar 15, 2026
Our trading company is cashflow insolvent and a creditor is threatening to file a winding-up petition. We want to keep the business running and propose repayment terms to all creditors. What are the steps, timeline, and risks of pursuing a scheme of arrangement in Hong Kong?

Lawyer Answers

TITUS Solicitors

TITUS Solicitors

Mar 17, 2026

In Hong Kong, a scheme of arrangement may be a viable option for companies facing cashflow pressure but still looking to preserve the business and reach a structured compromise with creditors. The right approach will depend on your company’s financial position, creditor mix, and how urgent the creditor action is, so early advice is very important.

If handled properly and at the right stage, there may be ways to stabilise the situation, engage creditors, and work towards a practical restructuring solution rather than allowing matters to escalate immediately into a winding-up scenario.

Our team at TITUS advises on Hong Kong restructuring, insolvency risk, and creditor negotiations, and we would be glad to assess your position and discuss possible next steps.

Please reach out to us to arrange a consultation as soon as possible — the earlier you act, the more options you are likely to have.

 

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