RE LEHMAN BROTHERS ASIA HOLDINGS LTD (in liquidation)

RE LEHMAN BROTHERS ASIA HOLDINGS LTD (in liquidation)

Where an application falls between administrative and adversarial character the court exercises its discretion; given the Liquidators' application concerned their personal financial interests and the Official Receiver's legitimate engagement to ensure correct principles, the court ordered that each party bear their...

Source-derived case information.

Citation
[2022] HKCFI 178
Parties
Liquidator (applicant): Lehman Brothers Asia Holdings Limited (in liquidation); Official Receiver (respondent): Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 January 2022
Case Number
HCCW443/2008
Procedural Posture
Companies Winding Up Proceedings / Judgment (costs Determination)
Outcome
Application to sanction payment granted; payment of US$2.9 billion sanctioned; no order as to costs (each party to bear own costs)
Legal Topics
Liquidator Remuneration, Sanction of Payment, Costs Orders, Role of Official Receiver
Source Language
en
Insolvency Company Law Civil Procedure Costs Liquidator Remuneration Sanction of Payment Costs Orders Role of Official Receiver

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Parties

Lehman Brothers Asia Holdings Limited (in liquidation)

Liquidator (applicant)

Official Receiver

Official Receiver (respondent)

Procedural Posture

Companies Winding Up Proceedings / Judgment (costs Determination)

Legal Issues

  1. 1 Whether the Official Receiver should pay a proportion of the Liquidator’s costs (Liquidators suggested 70%) from 26 May 2020 and bear her own costs
  2. 2 Whether the Liquidators should bear their own costs and the Official Receiver’s costs be paid out of the assets of the Company
  3. 3 Proper approach to exercise of the court's discretion over costs where the Official Receiver acts in statutory capacity versus adversarial position

Ratio Decidendi

Where an application falls between administrative and adversarial character the court exercises its discretion; given the Liquidators' application concerned their personal financial interests and the Official Receiver's legitimate engagement to ensure correct principles, the court ordered that each party bear their own costs and made no costs order against either party.

Court Disposition

Application to sanction payment granted; payment of US$2.9 billion sanctioned; no order as to costs (each party to bear own costs)

Orders

  • Sanction payment of US$2.9 billion by way of a bonus to be paid to KPMG Hong Kong for distribution in accordance with their procedures
  • No order as to the costs of the Liquidator’s application including the hearing on 6 January 2022