Orrick, Herrington & Sutcliffe LLP has hired Maurice Hoo as a partner and co-head of the firm’s global Private Equity practice. Hoo was a partner at Paul Hastings for five years before this and had headed the China private equity practice there. He brings with him a client base comprised of some of the world’s top equity funds and financial institutions that he helped with in investments in China and other parts of Asia. He also currently serves as counsel to the China Venture Capital Association and the China Real Estate Developers and Investors Association.

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Lovells Beijing managing partner Robert Lewis has left the firm just before the firm’s impending merger with Hogan & Hartson to join Shanghai-based AllBright Law Offices as a senior legal consultant. Foreign lawyers are legally not allowed to be partners at domestic law firms in China. He will continue to interact with his former Lovells co-workers through the Sino-Global Legal Alliance (SGLA), a referral group he helped establish three years ago. SGLA is comprised of 13 Chinese firms along with Lovells.

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Lovells has promoted 21 new partners across its offices, the largest number of its lawyers promoted to partner since 2007 when it made up 13 lawyers to partner, before it rebrands and merges with US firm Hogan & Hartson in May. Six of the new partners are from Asia and the Middle East. The new partners will be officially promoted on the day that Hogan Lovells debuts, and they increase the total partnership to over 800 partners.

Hogan Lovells’ new partners in Asia & Middle East

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Ashurst’s India group head, Richard Gubbins, is focusing on Asia – specifically the Singapore, Abu Dhabi, Dubai, and Hong Kong offices – to be the focal points for its Indian presence after the Bombay High Court ruled in December 2009 that the Reserve Bank of India should not have granted the firm a license to open a liaison office, causing the firm to close its new Delhi office.Gubbins said: “We never practiced law there, so it had served its purpose from our point of view. We’re turning our attention to Asia - there’s very much a shift to targeting India from there rather than London.”

Gubbins will be based in London, but the firm’s India strategy will focus on four sectors, which will be overseen from Asian offices.

Keith McGuire will lead the Indian corporate offering from ­Singapore, while Matthew Bubb, also in Singapore, looks after the firm’s infrastructure offering alongside Dubai partner Joss Dare. Abu Dhabi partner David Wadham will head the Indian energy business, while the finance side is ­covered by the Hong Kong and Singapore offices.

The UAE has no Chapter 11-style system and there have been calls for reform to the existing insolvency laws. Some lawyers in the region feel that Dubai World’s restructuring could lead to the much anticipated developments in the insolvency laws.

“Particularly given the magnitude of the amounts at stake, the restructuring of Dubai World will stress the nascent governing legal infrastructure,” said Oliver Agha of Islamic finance firm, Agha & Shamsi. “It may result in initiatives to develop or fill in gaps in the law that are highlighted once major restructurings like this test and stress the existing legal framework.”

“This is not the first restructuring exercise in the Gulf, but it is the biggest,” commented Mark Andrews, the head of restructuring & insolvency at Denton Wilde Sapte, “It will test the local business culture very severely.”

However, there is only a slim chance that the Dubai World situation will reach litigation to test the legal framework since Dubai World is state-owned and may be subject to sovereign immunity. Actions against the Dubai government can only be done with the permission of the Ruler of Dubai.

It seems that some creditors may be preparing for action, but the unique nature of the case may deter them for now. “Creditors are naturally keen to understand their legal position, as these matters can be quite complicated,” said Philip Abbott, a partner at Simmons & Simmons. “Each creditor will have its own motivations in terms of a restructuring process, but I would expect parties will attempt for the process to be consensual rather than litigious.”

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Even with the surprise announcement by Dubai World that it wanted to delay debt repayments, which led to widespread panic, Middle East lawyers are downplaying the effects of it on Dubai’s future.

Dubai World, a state-backed conglomerate in charge of some of the Middle East’s largest projects, has approximately $60 billion of debt, and on November 25 the Dubai state asked creditors for a six-month pause on the debt payment.

Clifford Chance is acting as the adviser for Dubai World, as they have worked together in the past numerously, with Dubai-based corporate partner Simon Clinton and restructuring partner Robin Abraham leading the team.

Latham is advising the Dubai authorities on this matter, with a team led by local office head Bryant Edwards. Allen & Overy is rumored to be advising some of the banks acting as Dubai World’s senior lenders, but the firm is not confirming its position.

If creditors approve the postponement plans, then the repayment of the $4 billion bond issued by Dubai World subsidiary Nakheel, being advised by DLA Piper, will be delayed till the end of May 2010. Deloitte has been appointed to oversee a potential restricting of the group.

According to press reports, the Dubai government will not guarantee Dubai World’s debts, and it is unclear if Abu Dhabi will help Dubai in this crisis.

Ashurst Middle East managing partner Nick Bryans said, though, that: “The interest in the UK and US press in this matter is not reflected here – quite the opposite. I think in part the strong reaction was based on the manner in which this was announced, just ahead of the holiday. The financial markets were affected but appear to have recovered.

“I have no doubt that the debt issue will be solved and we still see significant signs that things are picking up, with a lot of new opportunities in the Middle East region.”

A Dubai-based partner with a magic circle firm stated: “To us here in Dubai this news was not exactly earth-shattering because postponing the debt repayment was what they were always going to do.”

One London-based magic circle Islamic finance partner commented: “If sanity prevails they’ll find the money and repay the debt, but there is a lot of hysteria and froth at the moment, so we will have to wait.”

Clifford Chance has assisted on two Hong Kong IPOs, led by partner Amy Lo assisted by Rupert Li:
· China Minsheng Bank did an IPO that raised US$3.9 billion and became listed on the HKSE. The firm advised on Hong Kong and US law aspects of the global offering.
· Chiina Longyuan Power’s IPO was worth about US$2.2 billion, and the firm advised on the Hong Kong and US legal aspects.

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Linklaters’ Asia managing partner Zili Shao will leave the firm at the end of January to become chairman and CEO of JP Morgan’s China businesses.  He has been Asia managing partner since May, when after an election he replaced Giles White.

Shao specializes in M&A and private equity investments, and in his new position he will have responsibility for all of the investment bank’s operations in China.

Managing partner Simon Davies commented: “While Zili’s departure will be a great loss to the firm, we respect and support his decision to take on this exciting challenge with one of the world’s leading financial services institutions. It is a testament to the leadership qualitites of Linklaters’ many talented individuals that enables one of our own to move into roles of this nature.”

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Winston & Strawn have expanded their Asia presence by opening up offices in Beijing and Shanghai.  Xiangyang Ge, head of Baker & McKenzie’s China regulatory team, will join Winston & Strawn to head both bases.  He will focus on foreign investment work as well as cross-border M&A.  The firm has started that it has further growth plans for its China branches.

Managing partner Thomas Fitzgerald said: “We expect to continue our strategic expansion on a global basis and in regions widely viewed as having the greatest growth opportunities for the firm as well as its corporate clientele. As the world market continues to rebound from last year’s downturn, we see Asia, and China particularly, continuing to play an increasingly important role.”

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Orrick, Herrington & Sutcliffe has recruited Phoebus Chu, formerly a partner at Paul, Hastings, Janofsky & Walker LLP, to join as a partner in the firm’s Hong Kong and Beijing offices.  Chu has over 15 years of experience in China and Hong Kong cross-border corporate finance, capital markets, mergers and acquisitions, and public company matters, and will work with Orrick’s team of corporate and capital markets lawyers in Beijing, Hong Kong and Shanghai.

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Davis Polk & Wardwell LLP has represented JP Morgan Securities Ltd as sole dealer manager in regards to a cash tender offer by Noble Group Limited to acquire up to approximately US$488 million of its outstanding US$680 million 6.625% senior notes due 2015. The firm’s team was led by Hong Kong-based partner William F. Barron and partner Eugene C. Gregor of the Tokyo office.

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Clifford Chance has assisted NWS Holdings Limited on its sale of a controlling share, valued at HK$1.82 billion, in Taifook Securities Group Limited to Hai Tong (HK) Financial Holdings Limited. The sale will prompt a mandatory general offer for Taifook’s remaining shares under the Hong Kong Takeovers Code. This is thought to be one of the first takeovers by a Mainland securities company of a Hong Kong securities company. Hong Kong partner Cherry Chan led the firm’s advisory team.

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DLA Piper has advised GGV Capital in relation to its US$15 million investment in China’s leading travel search engine, Qunar.com. The funds will used to develop the company’s brand and other market activities. GGV Capital is one of the first venture capital firms to fund start-ups in China. Beijing-based partner Rocky Lee advised.

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Clifford Chance and Latham & Watkins are advising on the restructuring of Dubai World, the state-owned conglomerate responsible for some of the Middle East’s most high- profile projects.  On November 25, The Dubai state asked the creditors of Dubai World for a six-month debt standstill on the company’s liabilities which shocked the credit markets.

According to press reports, the company has been attempting to pay off approximately $60 billion of debt while Deloitte has been appointed to oversee a potential restructuring of the group.

If the creditors approve of the move, then the repayment of a $4 billion bond issued by Dubai World subsidiary Nakheel will be delayed until the end of next May.

Clifford Chance is representing Dubai World, with including Dubai-based corporate partner Simon Clinton and restructuring partner Robin Abraham involved in the advising.  Latham & Watkins led by office head Bryant Edwards is believed to be assisting the Dubai authorities in connection to the standstill.  It has been cited that Allen & Overy is the counsel to some of Dubai World’s senior lenders.

Developments over Dubai’s debt will be closely watched by international investors and restructuring advisers.  This situation has also corroded Dubai’s status as a business center since Dubai World had been expected to meet its debt obligations.

One restructuring lawyer at a leading UK practice commented: “It is interesting that they are looking at protecting the image of Dubai and they go and announce this as the markets shut for [the public holiday] Eid. From a PR point of view, it just looks awful.”

Davis Polk & Wardwell LLP has represented a Goldman Sachs International, The Hong Kong and Shanghai Banking Corporation Limited, JP Morgan Securities Ltd and The Royal Bank of Scotland plc as initial purchasers in regards to Noble Group Limited’s Rule 144A/Reg S global offering worth US$850 million. Hong Kong-based partner William F. Barron and Tokyo-based partner Eugene C. Gregor led the advising team.

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Mallesons Stephen Jaques has assisted AXA Asia Pacific Holdings in connection with the takeover proposal from AMP Limited and AXA SA, the largest shareholder in AXA APH. The deal would have AMP purchase all of the shares in AXA APH with AXA SA acquiring the Asia operations of AXA APH. However, the deal has been deemed inadequate by committee of independent directors. The transaction was led by co-head of M&A Stephen Minns.

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Cleary Gottlieb is representing China Investment Corporation in relation to its US$1.58 billion investment in AES Corporation and a related wind generation joint venture. CIC will obtain 125.5 million shares of AES stock, which is equal to approximately 15 percent equity interest in the company, and can nominate a director to the AES board. CIC also signed a letter of intent to invest US$571 million in the wind generation business of AES for about 35 percent interest. Beijing-based partner Filip Moerman and New York-based partners Richard Lincer and Paul Shim were involved.

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Fried, Frank, Harris, Shriver & Jacobson has aided Stone Group Holdings Limited with its scheme of arrangement and withdrawal of listing from the main board of the Hong Kong Stock Exchange in order to become a private company. The total consideration under the proposal was about US$71 million. The firm also assisted the company on financing aspects. Macquarie Capital (Hong Kong) Limited was the financial adviser and Anglo Chinese Corporate Finance Limited acted as independent financial adviser to the privatization. The firm’s team was led by partner Victoria Lloyd.

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