XN000022-1995-06-23 — Page 6

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Mr Barma said the Government had also received a number of proposals emerging from the public consultation exercise and would consider implementing them. These new initiatives are:

provision of car parks at railway stations to facilitate "park and ride";

publicising the benefits of car pooling;

more pedestrianised areas; and

more "no stopping" restrictions in the busiest areas during peak hours.

Mr Barma emphasised that the package of proposals was aimed at restoring the balance between private car growth and traffic flow.

He noted that the proposals would be put to the Transport Advisory Committee for consideration. Thereafter, the Executive Council would be consulted.

End/Friday, June 23, 1995

Corporate rescue procedure proposed

The Insolvency Sub-committee of the Law Reform Commission today (Friday) published a consultation paper containing proposals for the introduction of a comprehensive corporate rescue procedure in Hong Kong.

The Chairman of the Sub-committee on Insolvency, Professor Edward Tyler, said the need for such a procedure was widely accepted in the business community. Corporate rescue procedures, like the Administration procedure in the United Kingdom and Chapter 11 in the United States, are in place in many other jurisdictions.

The proposed rescue procedure, known as provisional supervision, would provide most companies in financial difficulties with court protection and time to put a proposal for a voluntary arrangement to creditors.

This would be achieved by the court providing the protection of a stay on all proceedings against the company, including winding up proceedings, while a proposal for a voluntary arrangement was being prepared. Court protection could last for up to six months, after which creditors could vote to extend the stay without court protection if a voluntary arrangement had not been finalised or the company had not gone into liquidation following a recommendation of the provisional supervisor.