Tiffany has extensive knowledge and experience in corporate insolvency, restructuring and dispute resolution in Hong Kong and the PRC. She combines international practices with local characteristics of China, and provides professional advice and resolutions to clients for challenging cross-border projects. She was one of the Joint Provisional Liquidators to facilitate the successful restructuring of Luckin Coffee Inc. which emerged out of a massive crisis as a result of accounting fraud and she also leads some of the most significant insolvency cases in Asia in the present.

How can clients prepare themselves for changes in credit market dynamics, if debt becomes increasingly expensive and less available?

Cash is king and we cannot emphasise the importance of cash management enough particularly in the times of credit crunch. There are always funding options in the market and investors would price in inherent risks of internal control weaknesses and the competence level of management. Any deficiencies in the system will affect appetite of investors and are reflected in terms of offers.

What are some of the challenges posed by inter-creditor issues in restructuring, and how can they be effectively addressed in your experience?

Differences in internal procedures for obtaining approvals. Experience in dealing with distress situations and risk appetite of creditors are the root causes of these differences. These challenges can be effectively managed by way of engaging an independent financial advisor and lawyer who are experienced in dealing with a distressed situation so that they are able to perform the communication and analytical work in a more effective and credible manner in order to drive the restructuring towards the desired outcome.

What are some of the most effective ways that companies can now deleverage their balance sheet while providing for a new streamlined governance structure?

A court restructuring process may well be the most effective means in my mind when vested interests of key stakeholders differ significantly and especially when there are a large number of parties involved. The restructuring of Luckin Coffee Inc is a great example to demonstrate how effective a court process can be when there is a significant level of distrust in the incumbent board and management team, which renders any informal consensual restructuring effort futile.

What has been the highlight of your career so far?

Nothing beats being able to exceed creditors’ expectation by paying them back what they had lost and thought they would never get anything meaningful back.

What are your ambitions for your practice in the next five years?

We have a very talented and diverse team. Our practice was a start up when I joined two and a half years ago and we were lucky to have been able to recruit some of the very best from the market and demonstrate our ability to deliver desirable outcomes to clients in an efficient manner, so I see our practice being recognised as the first and preferred choice when it comes to restructuring and insolvency mandates.

What advice would you give to younger practitioners hoping to one day be in your position?

Younger practitioners need to see beyond the negativity that is associated with business failures, distress and dispute. Think about the differences that we could make to the community and the economy when we are able to help save struggling businesses or at least mitigate the severity of the problems if we are able to give clients and other stakeholders proper advice. Perseverance is key and will pay off.