RE STEREO LTD (the Company)

RE STEREO LTD (the Company)

The court concluded the statutory conditions under s166(2) were satisfied (proper class constitution, meeting convened per court directions, sufficient information to creditors, requisite majority in favour) and the scheme met the reasonable-approval test from Re China Light & Power; accordingly the petition was allowed and the scheme sanctioned.

Citation
RE STEREO LTD (the Company)
Parties
Petitioner (the Company): Stereo Limited; Petitioning Creditor (winding Up Petition): Canon Hong Kong Company Limited; Scheme Investor/offeror (wholly Owned by Mr Chan Hoi Lam): Vevion Hong Kong Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 July 2005
Case Number
HCMP757/2005
Procedural Posture
Scheme of Arrangement Under Companies Ordinance (sections 166 & 167) / Sanction Hearing Petition Allowed and Scheme Sanctioned
Outcome
Petition allowed and scheme of arrangement sanctioned.
Legal Topics
Scheme of Arrangement, Winding Up Petition, Creditor Meetings, Statutory Voting Requirements
Source Language
EN
Company Law Insolvency Civil Procedure Scheme of Arrangement Winding Up Petition Creditor Meetings Statutory Voting Requirements

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Parties

Stereo Limited

Petitioner (the Company)

Canon Hong Kong Company Limited

Petitioning Creditor (winding Up Petition)

Vevion Hong Kong Limited

Scheme Investor/offeror (wholly Owned by Mr Chan Hoi Lam)

Procedural Posture

Scheme of Arrangement Under Companies Ordinance (sections 166 & 167) / Sanction Hearing Petition Allowed and Scheme Sanctioned

Legal Issues

  1. 1 Whether statutory requirements for sanction under s166(2) were met
  2. 2 Whether classes of creditors were properly constituted
  3. 3 Whether the meeting was duly convened in accordance with court directions

Ratio Decidendi

The court concluded the statutory conditions under s166(2) were satisfied (proper class constitution, meeting convened per court directions, sufficient information to creditors, requisite majority in favour) and the scheme met the reasonable-approval test from Re China Light & Power; accordingly the petition was allowed and the scheme sanctioned.

Court Disposition

Petition allowed and scheme of arrangement sanctioned.

Orders

  • Petition allowed and scheme of arrangement sanctioned.
  • Sanctioned scheme to be binding on all creditors and the Company