|
|
|
Hong Kong court orders China's Evergrande, which owes $300 billion, to liquidate
Recent Law Insight |
2024/01/30 11:01
|
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. |
|
|
|
|
|
|
5 former officers charged with federal civil rights violations
Recent Law Insight |
2023/09/18 12:08
|
Five former Memphis police officers were charged Tuesday with federal civil rights violations in the beating death of Tyre Nichols as they continue to fight second-degree murder charges in state courts arising from the killing.
Tadarrius Bean, Desmond Mills, Demetrius Haley, Emmitt Martin and Justin Smith were indicted in U.S. District Court in Memphis. The four-count indictment charges them with deprivation of rights under the color of law through excessive force and failure to intervene, and through deliberate indifference; conspiracy to witness tampering; and obstruction of justice through witness tampering.
The charges come nine months after the violent beating during a Jan. 7 traffic stop near Nichols’ Memphis home, in which they punched, kicked and slugged the 29-year-old with a baton as he yelled for his mother. Nichols died at a hospital three days later. The five former officers, all Black like Nichols, have pleaded not guilty to state charges of second-degree murder and other alleged offenses in the case.
“We all heard Mr. Nichols cry out for his mother and say ‘I’m just trying to go home,’” Attorney General Merrick Garland said in a video statement after the indictment. “Tyre Nichols should be alive today.”
U.S. Attorney Kevin Ritz in West Tennessee said at an afternoon news briefing that the state and federal cases are on separate tracks. Ritz declined to predict how quickly they would proceed.
Kristen Clarke, who leads the U.S. Department of Justice’s civil rights division, said at the appearance that the five former officers used excessive force, failed to advise medical personnel about Nichols’ injuries and conspired to cover up their misconduct.
“In our country, no one is above the law,” she said, adding she met earlier Tuesday with Nichols’ mother and stepfather. Caught on police video, the Nichols beating was one in a string of violent encounters between police and Black people that sparked protests and renewed debate about police brutality and police reform in the U.S.
Nichols’ mother, RowVaughn Wells, said she was surprised that the federal charges “happened so quickly.” The investigation that led to the indictment was announced in the weeks after the Jan. 7 beating death. |
|
|
|
|
|
|
The initial online search spurring a raid on a Kansas paper was legal
Recent Law Insight |
2023/08/21 15:16
|
The initial online search of a state website that led a central Kansas police chief to raid a local weekly newspaper was legal, a spokesperson for the agency that maintains the site said Monday, as the newspaper remains under investigation.
Earlier this month, after a local restaurant owner accused the Marion County Record of illegally accessing information about her, the Marion police chief obtained warrants to search the newspaper’s offices and the home of its publisher, as well as the home of a City Council member who also accessed the driver’s license database.
The police chief led the Aug. 11 raids and said in the affidavits used to obtain the warrants that he had probable cause to believe that the newspaper and the City Council member had violated state laws against identity theft or computer crimes.
Both the City Council member and the newspaper have said they received a copy of the document about the status of the restaurant owner’s license without soliciting it. The document disclosed the restaurant’s license number and her date of birth, information required to check the status of a person’s license online and gain access to a more complete driving record. The police chief maintains they broke state laws to do that, while the newspaper and Herbel’s attorneys say they didn’t.
The raid on the Record put it and its hometown of about 1,900 residents in the center of a debate about press freedoms protected by the First Amendment to the U.S. Constitution and Kansas’ Bill of Rights. It also exposed divisions in the town over local politics and the newspaper’s coverage of the community and put an intense spotlight on Police Chief Gideon Cody.
Department of Revenue spokesperson Zack Denney said it’s legal to access the driver’s license database online using information obtained independently. The department’s Division of Vehicles issues licenses.
“That’s legal,” he said. “The website is public facing, and anyone can use it.”
The Kansas Bureau of Investigation continues to probe the newspaper’s actions. The KBI reports to state Attorney General Kris Kobach, a Republican, while the Department of Revenue is under Democratic Gov. Laura Kelly’s authority.
|
|
|
|
|
|
|
Assange loses latest bid to stop extradition to the U.S. on spying charges
Recent Law Insight |
2023/06/09 15:56
|
A British judge has rejected the latest attempt by WikiLeaks founder Julian Assange to fight extradition to the United States to face spying charges.
High Court justice Jonathan Swift said a new appeal would simply “re-run” arguments that Assange’s lawyers had already made and lost.
Assange has battled in British courts for years to avoid being sent to the U.S., where he faces 17 charges of espionage and one charge of computer misuse over WikiLeaks’ publication of classified diplomatic and military documents more than a decade ago.
In 2021, a British district judge ruled that Assange should not be extradited because he was likely to kill himself if held under harsh U.S. prison conditions. U.S. authorities later provided assurances that the Australia-born Assange wouldn’t face the severe treatment that his lawyers said would put his physical and mental health at risk.
Those assurances led Britain’s High Court and Supreme Court to overturn the lower court’s ruling, and the British government authorized extradition in June 2022.
Assange is seeking to halt extradition by obtaining a new court hearing on parts of his case that were dismissed by the first judge.
But in a ruling made public on Friday, Swift said all eight parts of Assange’s potential appeal were not “arguable” and should not be heard.
“The proposed appeal comes to no more than an attempt to re-run the extensive arguments made to and rejected by the district judge,” he said.
Assange’s wife, Stella Assange, said the WikiLeaks founder would make a new appeal attempt at a High Court hearing on Tuesday. He has almost exhausted his avenues of appeal in the U.K. but could still try to take his case to the European Court of Human Rights. |
|
|
|
|
|
|
Biden and McCarthy reach a final deal and now must sell it to Congress
Recent Law Insight |
2023/05/29 10:28
|
With days to spare before a potential first-ever government default, President Joe Biden and House Speaker Kevin McCarthy reached final agreement Sunday on a deal to raise the nation’s debt ceiling and worked to ensure enough support in Congress to pass the measure in the coming week.
The Democratic president and Republican speaker spoke late in the day as negotiators rushed to draft and post the bill text for review, with compromises that neither the hard-right or left flank is likely to support. Instead, the leaders are working to gather backing from the political middle as Congress hurries toward votes before a June 5 deadline to avert a damaging federal default.
“Good news,” Biden declared Sunday evening at the White House.
“The agreement prevents the worst possible crisis, a default, for the first time in our nation’s history,” he said. “Takes the threat of a catastrophic default off the table.”
The president urged both parties in Congress to come together for swift passage. “The speaker and I made clear from the start that the only way forward was a bipartisan agreement,” he said.
The final product includes spending cuts but risks angering some lawmakers as they take a closer look at the concessions. Biden told reporters at the White House upon his return from Delaware that he was confident the plan will make it to his desk.
McCarthy, too, was confident in remarks at the Capitol: “At the end of the day, people can look together to be able to pass this.”
The days ahead will determine whether Washington is again able to narrowly avoid a default on U.S. debt, as it has done many times before, or whether the global economy enters a potential crisis.
In the United States, a default could cause financial markets to freeze up and spark an international financial crisis. Analysts say millions of jobs would vanish, borrowing and unemployment rates would jump, and a stock-market plunge could erase trillions of dollars in household wealth. It would all but shatter the $24 trillion market for Treasury debt.
Anxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due soon as the world watches American leadership at stake.
McCarthy and his negotiators portrayed the deal as delivering for Republicans though it fell well short of the sweeping spending cuts they sought. Top White House officials were briefing Democratic lawmakers and phoning some directly to try to shore up support.
One surprise was a provision important to influential Sen. Joe Manchin, D-W.Va., giving congressional backing for the controversial Mountain Valley Pipeline, a natural gas project, that is certain to raise questions. |
|
|
|
|
|
Law Firm SEO RSS Feed
