JOINT OFFICIAL LIQUIDATORS OF CENTAUR LITIGATION UNIT SERIES 1 LTD (In Liquidation)

JOINT OFFICIAL LIQUIDATORS OF CENTAUR LITIGATION UNIT SERIES 1 LTD (In Liquidation)

The court recognised the Cayman joint official liquidators and granted the requested assistance including a requirement that no proceedings in Hong Kong against the companies proceed without the court's leave, because that control mirrors Cayman law and is consistent with Hong Kong s182 Cap 32 and applicable common law principles, and on balance the risk to uninformed creditors did not outweigh the need for orderly liquidation.

Citation
JOINT OFFICIAL LIQUIDATORS OF CENTAUR LITIGATION UNIT SERIES 1 LTD (In Liquidation)
Parties
Applicant (joint Official Liquidators): Joint Official Liquidators of Centaur Litigation SPC (In Liquidation); Applicant (joint Official Liquidators): Joint Official Liquidators of Centaur Litigation Unit Series 1 Limited (In Liquidation); Applicant (joint Official Liquidators): Joint Official Liquidators of Centaur Litigation Limited (In Liquidation); Judge of the Court of First Instance: Hon Harris J
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 March 2016
Case Number
HCMP3391/2015
Procedural Posture
Recognition and Assistance of Foreign (cayman) Liquidators / Ex Parte Application Heard 28 January 2016; Decision Delivered 10 March 2016
Outcome
Application granted in full in the terms of the Appendix
Legal Topics
Recognition of Foreign Liquidators, Leave to Commence Proceedings/stay of Proceedings, Powers of Liquidators, Ancillary Relief (freezing/search and Seizure/disclosure)
Source Language
EN
Companies Law Insolvency Cross Border Insolvency Private International Law Recognition of Foreign Liquidators Leave to Commence Proceedings/stay of Proceedings Powers of Liquidators Ancillary Relief (freezing/search and Seizure/disclosure)

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Parties

Joint Official Liquidators of Centaur Litigation SPC (In Liquidation)

Applicant (joint Official Liquidators)

Joint Official Liquidators of Centaur Litigation Unit Series 1 Limited (In Liquidation)

Applicant (joint Official Liquidators)

Joint Official Liquidators of Centaur Litigation Limited (In Liquidation)

Applicant (joint Official Liquidators)

Hon Harris J

Judge of the Court of First Instance

Procedural Posture

Recognition and Assistance of Foreign (cayman) Liquidators / Ex Parte Application Heard 28 January 2016; Decision Delivered 10 March 2016

Legal Issues

  1. 1 Whether the Hong Kong court should recognise Cayman Islands joint official liquidators
  2. 2 Whether the court should grant an order requiring leave before proceedings in Hong Kong can be commenced against the companies in Cayman liquidation
  3. 3 Whether the proposed order is consistent with Hong Kong law (s182 Cap 32) and Cayman law and whether it is fair to creditors in Hong Kong

Ratio Decidendi

The court recognised the Cayman joint official liquidators and granted the requested assistance including a requirement that no proceedings in Hong Kong against the companies proceed without the court's leave, because that control mirrors Cayman law and is consistent with Hong Kong s182 Cap 32 and applicable common law principles, and on balance the risk to uninformed creditors did not outweigh the need for orderly liquidation.

Court Disposition

Application granted in full in the terms of the Appendix

Orders

  • The appointment of Hugh Dickson, Said Jahani and David Bennett as Joint Official Liquidators of Centaur Litigation SPC (In Liquidation) is recognised by this Court.
  • The Liquidators may exercise the powers available to them under Cayman law and equivalent Hong Kong powers as if appointed under Hong Kong law to locate, protect, secure and take into possession assets and records within the jurisdiction and to continue investigations.