In the recent decision of Re Shinsun Holdings (Group) Co., Ltd. FSD 192 of 2022 (DDJ) (21 April 2023) (unreported), the ultimate beneficial owner of bonds held through Euroclear failed to evidence that it was authorised, or had standing, to pursue a winding-up petition against the issuer. This decision demonstrates the pitfalls that bondholders who hold their securities via clearing systems will need to avoid when directly enforcing claims against issuers, and we discuss some of the practical steps that bondholders could take in this context.
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