RE APP (HONG KONG) LTD
The court sanctioned the scheme as amended because the statutory majority of creditors approved the amendments, the changes were minor and not prejudicial, the adjudicator consented to the revised process, the class of creditors was properly constituted and fairly represented, and there was a realistic benefit to creditors compared with winding up; inherent jurisdiction allows correction of minor errors but not substantive change, which was not implicated here.
- Citation
- RE APP (HONG KONG) LTD
- Parties
- Petitioner: APP (Hong Kong) Limited; Opposing Creditor: American Home Assurance Company; Opposing Creditor: APP International Trading (V) Ltd; Supporting Creditor: Lucky Ever Ltd.; Supporting Creditor: APP China Trading Ltd.; Supporting Creditor: Vestwin Industrial Ltd.; Supporting Creditor: PT Indah Kiat Pulp & Paper Tbk; Supporting Creditor: PT Lontar Papyrus Pulp & Papers; Supporting Creditor: IK Import & Export Ltd.; Supporting Creditor: PT the Univenus; Supporting Creditor: PTPakrik Kertas; Supporting Creditor: Tjiwi Kimia Tbk; Supporting Creditor: PT Pindo Deli Pulp & Papers; Supporting Creditor: TK Import & Export Ltd.; Supporting Creditor: TK Trading Ltd.; Supporting Creditor: APP International Trading (China) Ltd.
- Court
- Court of First Instance
- Jurisdiction
- Hong Kong
- Judgment Date
- 4 October 2005
- Case Number
- HCMP2420/2004
- Procedural Posture
- Scheme of Arrangement (s.166 Companies Ordinance) / Sanction Hearing (final)
- Outcome
- Scheme of arrangement sanctioned as amended
- Legal Topics
- Scheme of Arrangement, Creditors' Meeting, Class Composition, Adjudication of Claims, Variation of Scheme
- Source Language
- EN
Case Brief
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Parties
APP (Hong Kong) Limited
Petitioner
American Home Assurance Company
Opposing Creditor
APP International Trading (V) Ltd
Opposing Creditor
Lucky Ever Ltd.
Supporting Creditor
APP China Trading Ltd.
Supporting Creditor
Vestwin Industrial Ltd.
Supporting Creditor
PT Indah Kiat Pulp & Paper Tbk
Supporting Creditor
PT Lontar Papyrus Pulp & Papers
Supporting Creditor
IK Import & Export Ltd.
Supporting Creditor
PT the Univenus
Supporting Creditor
PTPakrik Kertas
Supporting Creditor
Tjiwi Kimia Tbk
Supporting Creditor
PT Pindo Deli Pulp & Papers
Supporting Creditor
TK Import & Export Ltd.
Supporting Creditor
TK Trading Ltd.
Supporting Creditor
APP International Trading (China) Ltd.
Supporting Creditor
Procedural Posture
Scheme of Arrangement (s.166 Companies Ordinance) / Sanction Hearing (final)
Legal Issues
- 1 Whether court may sanction the proposed variations to the scheme
- 2 Whether a single class of creditors was properly constituted
- 3 Whether votes of related creditors should be discounted
Ratio Decidendi
The court sanctioned the scheme as amended because the statutory majority of creditors approved the amendments, the changes were minor and not prejudicial, the adjudicator consented to the revised process, the class of creditors was properly constituted and fairly represented, and there was a realistic benefit to creditors compared with winding up; inherent jurisdiction allows correction of minor errors but not substantive change, which was not implicated here.
Court Disposition
Scheme of arrangement sanctioned as amended
Orders
- Scheme of arrangement under Section 166 Companies Ordinance sanctioned as amended and copy to be annexed to the court order
- Each party to bear its own costs
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