RE MERCHANTS (HONG KONG) LTD

RE MERCHANTS (HONG KONG) LTD

The court found that the statutory jurisdictional requirements were satisfied and that the scheme met the objective test of being one which an intelligent and honest member of the class might reasonably approve; accordingly the petition to sanction the scheme under section 166 was granted.

Citation
RE MERCHANTS (HONG KONG) LTD
Parties
Petitioner: Merchants (Hong Kong) Limited; Creditor: Gold (Hong Kong) Limited; Creditor: Worldmark (Far East) Limited; Shareholder/related Party: Shanghai Merchants Holdings Limited; Proposed Lender: Ranbridege Finance Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 April 2005
Case Number
HCMP132/2005
Procedural Posture
Scheme of Arrangement Under Section 166 Companies Ordinance (cap.32) / Sanction Hearing/judgment
Outcome
Petition granted; scheme of arrangement sanctioned
Legal Topics
Scheme of Arrangement, Creditors' Meeting, Sanction by Court, Jurisdictional Requirements
Source Language
EN
Company Law Insolvency Corporate Restructuring Scheme of Arrangement Creditors' Meeting Sanction by Court Jurisdictional Requirements

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Parties

Merchants (Hong Kong) Limited

Petitioner

Gold (Hong Kong) Limited

Creditor

Worldmark (Far East) Limited

Creditor

Shanghai Merchants Holdings Limited

Shareholder/related Party

Ranbridege Finance Limited

Proposed Lender

Procedural Posture

Scheme of Arrangement Under Section 166 Companies Ordinance (cap.32) / Sanction Hearing/judgment

Legal Issues

  1. 1 Whether jurisdictional requirements for a section 166 scheme were complied with
  2. 2 Whether the scheme was explained sufficiently to creditors to enable informed voting
  3. 3 Whether the requisite majority approved the scheme

Ratio Decidendi

The court found that the statutory jurisdictional requirements were satisfied and that the scheme met the objective test of being one which an intelligent and honest member of the class might reasonably approve; accordingly the petition to sanction the scheme under section 166 was granted.

Court Disposition

Petition granted; scheme of arrangement sanctioned

Orders

  • Scheme of arrangement under section 166 Companies Ordinance sanctioned by the court