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In a highly significant case under the US bankruptcy laws, Hong Kong and Shanghai Banking Corporation v Simon [9th Cir 1998], the US Court of Appeals for the Ninth Circuit ruled that a foreign creditor may not bring a foreign collection proceeding against a debtor that has obtained a discharge under the bankruptcy law. In so doing, the Ninth Circuit has affirmed the extraterritorial effect of the US Bankruptcy Code.

US firms Cleary Gottlieb Steen & Hamilton and White & Case took the lead on the US$300 million 10-year issue by the state-owned Electricity Generating Authority of Thailand (EGAT) which closed on October 14. The issue, sold under Rule 144A in the US, incorporated a World Bank guarantee of principal and interest (on a partial basis), the first time the World Bank has provided a guarantee of principal and a single coupon payment on a rolling basis. Through this structure, Asian borrowers can access the global markets without incurring the risk premiums imposed since the financial downturn in July 1997.

UK firm Allen & Overy has provided advice to the project company and the sponsors of a US$373 million project finance deal in Vietnam. The Nghi Son Cement Company project is one of the largest project finance deals in Vietnam this year and one of the first deals to be financed with a multi-tranche limited recourse facility. It is also one of the first times that an offshore account has been used to channel finance directly to a project in Vietnam.

Formula One Holdings, which controls television rights for the motor racing world championship is planning a US$2 billion Eurobond issue within the next few weeks. The issue through Formula One Finance BV replaces plans for a flotation of Formula One Holdings. The flotation was abandoned last year following an inquiry by the European Commission into the relationship between motor racing's governing body, the FIA, the television broadcasters and the Formula One companies. The bond issue may be a preparatory move before another flotation attempt.

Lex Mundi, the international association of law firms, has decided to change its policy of excluding firms in New York, London, Washington DC, California, Texas and Illinois. It is now seeking one of the leading firms in each location to join its members. Washington DC's Steptoe & Johnson LLP is the first firm to take advantage of Lex Mundi's policy change to join the international alliance.

The decision of the UK High Court which threw the use of Chinese walls in professional firms into doubt has been overturned. The Court of Appeal has removed the injunction from accountant KPMG which barred it from acting for the Brunei Investment Agency on an investigation into the Agency's former activities. Woolf MR, giving the judgment of the court, said that the approach to such a case should be: to determine the existence of confidential information which might harm a former client; to determine whether there was a risk of that information being disclosed; and whether the former fiduciary relationship was so strong that the court should intervene with an injunction. These issues were to be determined on the facts of each case.

Allen & Overy is gaining an office in Bangkok as a result of its merger with local firm MPS & Associates. The firm already has regional offices in Beijing, Hong Kong, Singapore & Tokyo. MPS & Associates is a 18 lawyer corporate firm, working with international as well as domestic clients. It is well regarded for its banking and capital markets work. The three existing partners of MPS & Associates – Pises Sethsathira, Simon Makinson and Surapon Satimanont – will become partners in Allen & Overy on November 1.

• US law firm White & Case has announced the appointement of five new partners. Michael Bühler, who specializes in international commercial arbitration and international business transactions, has been named partner at the firm's Paris office. International tax partner Barrye Wall has joined the Los Angeles office. Mark Powell, a specialist in European competition and trade law, has been named a partner at the Brussels office. Partner James McGuire has been hired by the New York office as a specialist in white collar crime, complex civil litigation and corporate internal investigations. John Sarchio has joined the New York office as partner. He is head of the firm's Insurance Industry Practice Group. • Paul Gonson, attorney for the Securities and Exchange Commission (SEC), has announced that he will retire at the end of the year. Mr Gonson became SECs counsel in 1979 and has argued more than 100 appellate cases on behalf of the Commission, including cases before the Supreme Court and all US Courts of Appeal. He will continue to act as part-time consultant to the Commission following his retirement.

The Castagnede Report produced by the Commission this month recommends that the EU should begin a gradual reconciliation of the member states' VAT rates, ie turnover tax, and it should harmonize reduced rates by widening their field of application. The report comments that the level of VAT rates in member states still varies considerably with the normal rate lying somewhere between 15% and 25% and reduced rates lying between 5% and 17%. The report states that there are a number of substantial differences between the member states in their application of VAT. Denmark does not apply any reduced rates; Austria, Portugal, Finland and Sweden apply two reduced rates; the other member states apply a single reduced rate but also apply special rates, including a zero rate on some products. At the moment these differences do not cause distortions in competition or affect trade flows. However, the Commission is concerned that with the continuation of market integration, the arrival of the single currency and the increased use of electronic commerce, competition will increase, creating the need to harmonize VAT.

The government has now published its Bill on the UK’s new financial regulatory system, but only time will tell whether the new hybrid will function effectively. By Simon Gleeson of Richards Butler, London