Corporate reorganisation, as an alternative means to dispose of a failed corporations assets (to liquidation), is socially significant.An effective reorganisation regime helps preserve employment or otherwise maximise returns for company creditors.Unlike many other advanced economies, Hong Kong does not have a purpose-built reorganisation procedure.In the second half of the 1990s and the end of 2000s, the Hong Kong government did consider introducing a reorganisation procedure called "Provisional Supervision (PS)".This procedure, however, has never made it to the statute book.The main reason is that the bottleneck problem on whether employees laid off during PS should be treated the same way as those whose employment is terminated when the company is wound up has so far not been resolved.This paper makes an attempt to uncork that bottleneck.This will be done through a consideration of the ways to remove the satisfaction of employee claims as a precondition of activating the reorganisation procedure, as well as the possibility and desirability of employing the Scheme of Arrangement procedure as a voluntary arrangement mechanism under the PS.The proposals to be made in this paper will be based on a consideration of the UK and Australian experience in corporate rescue law-making.