• Section 5: Section 5: Concurrent Proceedings

    • Article 175 - Commencement of a proceeding under these Regulations after recognition of a non-QFC main proceeding

      After recognition of a non-QFC main proceeding, an administration or Liquidation may be commenced only if the Company has assets in the QFC; the effects of that proceeding shall be restricted to the assets of the Company that are located in the QFC and, to the extent necessary to implement cooperation and coordination under Articles 172, 173 and 174, to other assets of the Company that, under these Regulations, should be administered in that proceeding.

    • Article 176 - Coordination of a proceeding under these Regulations and a non-QFC proceeding

      Where a non-QFC proceeding and a proceeding under these Regulations are taking place concurrently regarding the same Company, the QFC Court shall seek cooperation and coordination under Articles 172, 173 and 174, and the following shall apply:

      (1) when the proceeding in the QFC is taking place at the time the application for recognition of the non-QFC proceeding is filed, any relief granted under Article 167 or 168 must be consistent with the proceeding in the QFC;
      (2) when the proceeding in the QFC commences after recognition, or after the filing of the application for recognition, of the non-QFC proceeding, any relief in effect under Article 167 or 168 shall be reviewed by the QFC Court and shall be modified or terminated if inconsistent with the proceeding in the QFC; and
      (3) in granting, extending or modifying relief granted to a representative of a non-QFC non-main proceeding, the QFC Court must be satisfied that the relief relates to assets that, under these Regulations should be administered in the non-QFC non-main proceeding or concerns information required in that proceeding.

    • Article 177 - Coordination of more than one non-QFC proceeding

      In matters referred to in Article 156, in respect of more than one non-QFC proceeding regarding the same Company, the QFC Court shall seek cooperation and coordination under Articles 172, 173 and 174, and the following shall apply:

      (1) any relief granted under Article 167 or 168 to a representative of a non-QFC non-main proceeding after recognition of a non-QFC main proceeding must be consistent with the non-QFC main proceeding;
      (2) if a non-QFC main proceeding is recognised after recognition, or after the filing of an application for recognition, of a non-QFC non-main proceeding, any relief in effect under Article 167 or 168 shall be reviewed by the QFC Court and shall be modified or terminated if inconsistent with the non-QFC main proceeding; and
      (3) if, after recognition of a non-QFC non-main proceeding, another non-QFC non-main proceeding is recognised, the QFC Court shall grant, modify or terminate relief for the purpose of facilitating coordination of the proceedings.

    • Article 178 - Presumption of insolvency based on recognition of a non-QFC main proceeding

      In the absence of evidence to the contrary, recognition of a non-QFC main proceeding is, for the purpose of commencing a proceeding under these Regulations, proof of that Company's insolvency.

    • Article 179 - Rule of payment in concurrent proceedings

      Without prejudice to secured claims or rights in rem, a creditor who has received part payment in respect of its claim in a proceeding pursuant to a law relating to insolvency outside the QFC may not receive a payment for the same claim in a proceeding under these Regulations regarding the same Company, if and for so long as the payment to the other creditors of the same class is proportionately less than the payment the creditor has al received.