RE RE HSIN CHONG ASTER BUILDING SERVICES LTD

RE RE HSIN CHONG ASTER BUILDING SERVICES LTD

The court sanctioned the scheme because the statutory and doctrinal criteria were satisfied: the scheme served a permissible purpose, the unsecured creditors formed a sufficiently similar class, the meeting was properly convened and creditors were provided with adequate information, the statutory majorities were obtained (79% by number and 87% by value), and a reasonable intelligent and honest creditor could have voted in favour.

Citation
[2020] HKCFI 3108
Parties
Company (applicant): Hsin Chong Aster Building Services Limited; Creditors: Scheme creditors; Ultimate Holding Company: Hsin Chong Group Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 December 2020
Case Number
HCMP1069/2020
Procedural Posture
Scheme of Arrangement Under Companies Ordinance (s673) / Sanction Hearing / Decision
Outcome
Scheme sanctioned by the Court
Legal Topics
Scheme of Arrangement, Scheme Sanction, Creditors' Voting, Companies Ordinance S673, Rules of the High Court Order 102 Rule 5
Source Language
EN
Company Law Insolvency Civil Procedure Scheme of Arrangement Scheme Sanction Creditors' Voting Companies Ordinance S673 Rules of the High Court Order 102 Rule 5

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Parties

Hsin Chong Aster Building Services Limited

Company (applicant)

Scheme creditors

Creditors

Hsin Chong Group Holdings Limited

Ultimate Holding Company

Procedural Posture

Scheme of Arrangement Under Companies Ordinance (s673) / Sanction Hearing / Decision

Legal Issues

  1. 1 Whether the scheme is for a permissible purpose
  2. 2 Whether scheme creditors have sufficiently similar legal rights to form a class
  3. 3 Whether the scheme meeting was duly convened

Ratio Decidendi

The court sanctioned the scheme because the statutory and doctrinal criteria were satisfied: the scheme served a permissible purpose, the unsecured creditors formed a sufficiently similar class, the meeting was properly convened and creditors were provided with adequate information, the statutory majorities were obtained (79% by number and 87% by value), and a reasonable intelligent and honest creditor could have voted in favour.

Court Disposition

Scheme sanctioned by the Court

Orders

  • Order sanctioning the Scheme of Arrangement in the form of the draft presented to the Court