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Hong Kong court orders China's Evergrande, which owes $300 billion, to liquidate
Legal Information |
2024/01/30 10:43
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A Hong Kong court ordered China Evergrande, the world’s most heavily indebted real estate developer, to undergo liquidation following a failed effort to restructure $300 billion owed to banks and bondholders that fueled fears about China’s rising debt burden.
“It would be a situation where the court says enough is enough,” Judge Linda Chan said Monday. She said it was appropriate for the court to order Evergrande to wind up its business given a “lack of progress on the part of the company putting forward a viable restructuring proposal” as well as Evergrande’s insolvency.
China Evergrande Group is among dozens of Chinese developers that have collapsed since 2020 under official pressure to rein in surging debt the ruling Communist Party views as a threat to China’s slowing economic growth. But the crackdown on excess borrowing tipped the property industry into crisis, dragging on the economy and rattling financial systems in and outside China.
Chinese regulators have said the risks of global shockwaves from Evergrande’s failure can be contained. The court documents seen Monday showed Evergrande owes about $25.4 billion to foreign creditors. Its total assets of about $240 billion are dwarfed by its total liabilities.
“It is indisputable that the company is grossly insolvent and is unable to pay its debts,” the documents say.
About 90% of Evergrande’s business is in mainland China. Its chairman, Hui Ka Yan, who is also known as Xu Jiayin, was detained by authorities for suspected “illegal crimes” in late September, further complicating the company’s efforts to recover.
It’s unclear how the liquidation order will affect China’s financial system or Evergrande’s operations as it struggles to deliver housing that has been paid for but not yet handed over to families that put their life savings into such investments.
Evergrande’s Hong Kong-traded shares plunged nearly 21% early Monday before they were suspended from trading. But Hong Kong’s benchmark Hang Seng index was up 0.9% and some property developers saw gains in their share prices. |
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Hong Kong activist publisher Lai pleads not guilty to sedition charges
Legal Information |
2024/01/02 10:07
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Prominent activist and publisher Jimmy Lai on Tuesday pleaded not guilty to three charges of sedition and collusion with foreign countries in a landmark national security trial in Hong Kong.
Lai was arrested during a crackdown on dissidents following huge pro-democracy protests in 2019. He faces possible life imprisonment if convicted under a sweeping national security law imposed by Beijing. The trial is expected to last about 80 days without a jury.
The 76-year-old media tycoon who founded the now-defunct Apple Daily newspaper faces one count of conspiring to print seditious publications to incite hatred against the Chinese and Hong Kong governments, as well as two counts of collusion with foreign countries to call for sanctions and other hostile actions against China and Hong Kong.
Flanked by three prison officers, Lai formally pleaded not guilty to the charges read to him, shortly after the court rejected a last-ditch attempt by his counsel to throw out a sedition charge.
Prosecutor Anthony Chau in his opening statements described Lai as a “radical political figure” and the “mastermind” behind a conspiracy. Chau also said that Lai had used his media platform to advance his political agenda.
Clips of interviews that Lai gave to foreign media as well as speeches at events between 2019 and 2020 were also played in court. In the video, Lai called for support from foreign governments and urged U.S. officials as well as then-President Donald Trump to impose “draconian” measures on China and Chinese officials in retaliation for imposing the national security law and restricting freedoms in Hong Kong.
His prosecution has drawn criticism from the United States and the United Kingdom. Beijing has called those comments irresponsible, saying they went against international law and the basic norms of international relations.
The Inter-Parliamentary Alliance on China, or IPAC, an international political group that’s critical of China’s human rights record and foreign policy, said Lai’s trial “fabricated” evidence that the media mogul was involved in its work. |
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Russian authorities ask the Court to declare the LGBTQ ‘movement’ extremist
Legal Information |
2023/11/20 11:39
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The Russian Justice Ministry on Friday said it has filed a lawsuit with the nation’s Supreme Court to outlaw the LGBTQ+ “international public movement” as extremist, the latest crippling blow against the already beleaguered LGBTQ+ community in the increasingly conservative country.
The ministry said in an online statement announcing the lawsuit that authorities have identified “signs and manifestations of extremist nature” in “the activities of the LGBT movement active” in Russia, including “incitement of social and religious discord.” Russia’s Supreme Court has scheduled a hearing to consider the lawsuit for Nov. 30, the ministry said.
It is not yet clear what exactly the label would entail for LGBTQ+ people in Russia if the Supreme Court sides with the Justice Ministry, and the ministry did not immediately respond to a request for comment. But the move in itself represents the latest, and possibly by far the most drastic, step in the decade-long crackdown on gay rights in Russia unleashed under President Vladimir Putin, who has put “traditional family values” at the cornerstone of his rule.
The crackdown, which began a decade ago, slowly but surely chipped away at LGBTQ+ rights. In 2013, the Kremlin adopted the first legislation restricting LGBTQ+ rights, known as the “gay propaganda” law, banning any non-critical public depiction of “nontraditional sexual relations” among minors. In 2020, Putin pushed through a constitutional reform to extend his rule by two more terms that also outlawed same-sex marriage.
In 2022, after sending troops into Ukraine, the Kremlin ramped up its rhetoric about protecting “traditional values” from what it called the West’s “degrading” influence, in what rights advocates saw as an attempt to legitimize the war in Ukraine. That same year, the authorities adopted a law banning propaganda of “nontraditional sexual relations” among adults, too, effectively outlawing any public endorsement of LGBTQ+ people.
Another law passed this year prohibited gender transitioning procedures and gender-affirming care for trans people. The legislation prohibited any “medical interventions aimed at changing the sex of a person,” as well as changing one’s gender in official documents and public records. It also amended Russia’s Family Code by listing gender change as a reason to annul a marriage and adding those “who had changed gender” to a list of people who can’t become foster or adoptive parents.
“Do we really want to have here, in our country, in Russia, ‘Parent No. 1, No. 2, No. 3’ instead of ‘mom’ and ‘dad?’” Putin said in September 2022 at a ceremony to formalize Moscow’s annexation of four Ukrainian regions. “Do we really want perversions that lead to degradation and extinction to be imposed in our schools from the primary grades?”
Authorities have rejected accusations of discrimination against LGBTQ+ people. Earlier this week, Russian media quoted Andrei Loginov, a deputy justice minister, as saying that “the rights of LGBT people in Russia are protected” legally. Loginov spoke in Geneva, while presenting a report on human rights in Russia to the U.N. Human Rights Council, and argued that “restraining public demonstration of non-traditional sexual relationships or preferences is not a form of censure for them.”
Putin, speaking at a culture-related event in St. Petersburg on Friday, called LGBTQ+ people “part of the society, too” and said they are entitled to winning various arts and culture awards. He did not comment on the Justice Ministry’s lawsuit. |
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Supreme Court Releases Nonbinding Code of Ethics After Public Pressure
Legal Information |
2023/11/13 12:33
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The U.S. Supreme Court issued a code of ethics earlier today following months of financial scandals tied to Justices Samuel Alito and Clarence Thomas.
The nonbinding code of conduct, undersigned by all nine justices, “represents a codification of principles that we have long regarded as governing our conduct,” according to the Court.
The code outlines five canons that justices should abide by. According to the document released, justices should (1) “uphold the integrity and independence of the judiciary,” (2) “avoid impropriety and the appearance of impropriety in all activities,” (3) “perform the duties of office fairly, impartially and diligently,” they (4) “may engage in extrajudicial activities that are consistent with the obligations of the judicial office” and (5) should “refrain from political activity.”
Given the milieu of the Court, the multiple sections guiding financial and fiduciary activities are of particular note. Since the start of the year, public polling has shown falling approval of the Supreme Court amidst repeated controversies surrounding transparency and ethics, including multiple ProPublica reports detailing undisclosed gifts from Republican billionaire Harlan Crow to Thomas and his family, which have spurred calls for change and reform at the nation’s highest court.
However, immediately apparent is the lack of an enforcement mechanism in this new code of conduct. As Take Back the Court’s President Sarah Lipton-Lubet pointed out in a statement, there are “53 uses of the word ‘should’ and only 6 of the word ‘must,’” and emphasized that “the Court cannot police itself.”
Professor Leah Litman, who teaches constitutional law and federal courts at the University of Michigan, criticized the financial guidelines, which allow justices to fundraise for law-related nonprofits, calling it “a hall pass for the Federalist Society galas and Koch Network 501c3 and 501c4 [organizations] ”
At the beginning of the month, 66 organizations led by the Alliance for Justice called for Thomas to resign from the Court immediately, citing the justice’s “egregious” conduct that “undermines the ordinary citizen’s faith in the rule of law, further destabilizing our democracy.”
It remains to be seen if an enforcement mechanism will be rolled out.
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