MEDIA RELEASE PR37512
Walkers Sees Significant Opportunity for Offshore Services in Asia
HONG KONG, Dec. 10 /PRNewswire-AsiaNet/ --
Offshore Structures Offer Opportunities for Restructuring as well as
Investment
The worldwide financial market's performance over the last twelve months has made some financial
institutions and investors wary. However, leading global offshore law firm Walkers sees opportunities for
offshore finance and private equity structures in Asia. While there have certainly been shifts in focus by the
market, the right offshore strategies can help achieve onshore solutions for investors and institutions, says
Walkers.
Over the past five years, there has been significant growth in foreign direct investment in Asia, and
particularly in the Peoples' Republic of China. In that time, thousands of companies have been incorporated in
the British Virgin Islands (BVI) and the Cayman Islands to facilitate such investments. However, due to
differences in legal frameworks and financial markets around the world, achieving success for shareholders,
investors and creditors can sometimes prove challenging. The dependability of the legal systems in the BVI
and the Cayman Islands is often a key factor in the decision to use incorporated companies in one or both of
those jurisdictions in Asian corporate structures.
"Arguably, the enforcement of domestic security in Europe and North America is more dependable than
domestic security in developing markets," said John Rogers, head of the Finance and Corporate team for
Walkers' Singapore office. "However, where there is some uncertainty about the enforceability of domestic
security, which is sometimes the case in developing Asian markets, offshore security and structuring are
integral."
The recent economic downturn has systemically changed financial centres around the world and materially
impacted Asian finance. These changes will likely result in changes to financial agreements moving forward.
"Only a few years ago, borrowers had enormous power. Wielding this power to hamstring banks, borrowers
were left to essentially structure deals by their own terms. We now have a Brave New World, where power is
back in the hands of the lenders who have renewed leverage to increase their collateral and security
positions," said Andy Randall, head of the Finance and Corporate team for Walkers' Hong Kong office. "As
creditors and shareholders continue to fight for their rights in financial agreements, this trend could be a game-
changer in Asia and around the world."
In the developing Asian markets, Walkers has seen increased utilization of offshore security packaging,
restructuring and the use of offshore insolvency-related remedies as a means to achieving onshore solutions.
"The financial crisis has forced a shift in the offshore markets to focus on rights, remedies and enforcement
options for creditors and shareholders, financial and corporate restructuring, and the resolution of shareholder
and investor disputes," said Randall. "In addition, many hedge funds have been looking at restructuring to
survive lower returns, liquidity concerns and other market challenges. This shift has created opportunities for
implementing solutions that combine onshore and offshore elements."
Achieving the right outcome involves working together with the onshore lawyers in the relevant market from
the outset. The offshore enforcement strategy for an Indonesian asset, for example, may be different than the
strategy for a Chinese asset or an Indian asset.
"Offshore-onshore interaction has become a necessity to favorably resolve restructuring and insolvency
issues, particularly in the Asian markets. When it comes to pre-emptive enforcement of offshore security, the
Cayman Islands and the British Virgin Islands are seen as creditor friendly jurisdictions," said Antonia Hardy,
head of Walkers' Global Finance & Corporate Group. "Offshore services often provide part of the solution.
However, the strategic analysis prior to the enforcement is absolutely crucial."
This is a view shared by Fraser Hern, the head of the Walkers' Hong Kong Restructuring and Insolvency
team. "Strategic analysis prior to an enforcement or restructuring is critical, and should involve both onshore
and offshore counsel. There is a wide range of differing options available as a matter of BVI or Cayman
Islands law which can assist stakeholders involved in distressed scenarios onshore. Determining which is
appropriate in any given scenario requires a thorough analysis of key issues at an early stage, including the
location of the underlying assets, identity of key creditors, attitudes of local courts, future liquidity issues, and
identifying the client's ultimate objectives. Strategies differ widely depending on the specific details of the
matter in hand."
About The Walkers Group
From offices in the British Virgin Islands, Cayman Islands, Dubai, Hong Kong, Jersey, London, and
Singapore, the Walkers group provides legal and management services to leading FORTUNE 100 and FTSE
100 global corporations and financial institutions, capital markets participants, investment fund managers, and
growth-and middle-market companies.
The Walkers group is comprised of leading offshore law firm, Walkers; fund services provider, Walkers
Fund Services Limited; and SPV and corporate services providers, Walkers SPV Limited, Walkers Corporate
Services Limited and Walkers (BVI) Limited.
Walkers was recently named "Offshore Law Firm of the Year 2009" by PLC Which Lawyer? and "Top
Offshore Law Firm 2008" by Alpha Magazine. Walkers was also named "Offshore Law Firm of the Year" at the
Asian Legal Business Hong Kong Law Awards in 2007 and 2008. In 2006, Walkers was named as The
Lawyer's Offshore Law Firm of the Year, the PLC Which Lawyer? Yearbook Leading Cayman Islands Law
Firm and was one of two firms honoured as "Offshore Legal Team of the Year" by the Society of Trust and
Estate Practitioners (STEP). Walkers was named the Who's Who Legal Law Firm of the Year: Cayman Islands
for 2006 and 2007.
e-mail at info@walkersglobal.com. To contact Walkers' Hong Kong office by phone, call +852 2284 4566. To
contact Walkers' Singapore office by phone, call +65 6622 5928.
SOURCE: Walkers
CONTACT: Bruce Fryer of Levick Strategic Communications for Walkers,
+1-202-973-5316,
bfryer@levick.com
NEWS 
