RE LAI KAR YAN (DEREK) AND HO KWOK LEUNG GLEN AS THE JOINT AND SEVERAL LIQUIDATORS OF SAMSON PAPER CO LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) (“COMPANY”)

RE LAI KAR YAN (DEREK) AND HO KWOK LEUNG GLEN AS THE JOINT AND SEVERAL LIQUIDATORS OF SAMSON PAPER CO LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) (“COMPANY”)

The Court will issue a letter of request in simplified Chinese directed to the Shenzhen Intermediate People’s Court because the Company’s COMI is in Hong Kong, the Article 6 SPC Opinion procedural requirements are satisfied, recognition and assistance are necessary and appropriate to enable the liquidators to collect Mainland assets, and the Court has inherent jurisdiction to grant such a request subject to Mainland law limitations.

Citation
[2021] HKCFI 2151
Parties
Joint and Several Liquidator (applicant): Lai Kar Yan (Derek); Joint and Several Liquidator (applicant): Ho Kwok Leung Glen; Subject Company: Samson Paper Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 July 2021
Case Number
HCMP963/2021
Procedural Posture
Inherent Jurisdiction (recognition and Assistance Under SPC Opinion) / Chambers Decision (originating Summons)
Outcome
Order issued granting the originating summons and directing the issue of a letter of request
Legal Topics
Letters of Request, Recognition of Foreign Insolvency Office Holders, Centre of Main Interests (comi), SPC Opinion Pilot Mechanism
Source Language
EN
Insolvency Law Private International Law Civil Procedure Cross Border Judicial Cooperation Letters of Request Recognition of Foreign Insolvency Office Holders Centre of Main Interests (comi) SPC Opinion Pilot Mechanism

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Parties

Lai Kar Yan (Derek)

Joint and Several Liquidator (applicant)

Ho Kwok Leung Glen

Joint and Several Liquidator (applicant)

Samson Paper Company Limited

Subject Company

Procedural Posture

Inherent Jurisdiction (recognition and Assistance Under SPC Opinion) / Chambers Decision (originating Summons)

Legal Issues

  1. 1 Whether the Hong Kong Court should issue a letter of request under the SPC Opinion to the Shenzhen Intermediate People’s Court seeking recognition and assistance for Hong Kong liquidators
  2. 2 Whether the Company’s centre of main interests (COMI) is in Hong Kong and the SPC Opinion therefore applies
  3. 3 Whether the procedural and documentary requirements of Article 6 of the SPC Opinion are satisfied

Ratio Decidendi

The Court will issue a letter of request in simplified Chinese directed to the Shenzhen Intermediate People’s Court because the Company’s COMI is in Hong Kong, the Article 6 SPC Opinion procedural requirements are satisfied, recognition and assistance are necessary and appropriate to enable the liquidators to collect Mainland assets, and the Court has inherent jurisdiction to grant such a request subject to Mainland law limitations.

Court Disposition

Order issued granting the originating summons and directing the issue of a letter of request

Orders

  • A letter of request in simplified Chinese in the form appended to the decision be issued to the Shenzhen Intermediate People’s Court seeking its assistance in aid of the Company’s liquidation and its liquidators
  • The Liquidators’ costs of this application be paid out of the assets of the Company as an expense of the Company’s liquidation