Abstract:
The interplay between insolvency and arbitration remains contentious, especially where winding-up petitions involve disputed debts subjected to an arbitration agreement. In Hyalroute Communication Group Ltd v Industrial and Commercial Bank of China (Asia) Ltd [2025] HKCFI 2417 (“Hyalroute”), the Hong Kong Court of First Instance confronted this issue with an added cross-border element: the plaintiff sought an anti-suit injunction to restrain Cayman winding-up proceedings by invoking an arbitration agreement governed by Hong Kong law. This commentary critiques the court’s interpretation of the arbitration agreement and argues that Hyalroute ultimately underscores the potential for inconsistent outcomes when both domestic and foreign regimes are engaged.