RE PERFECT SENSE GROUP LTD

RE PERFECT SENSE GROUP LTD

The court found that the creditor class was properly constituted, the shortened notice was justified by overwhelming pre-approval and support, and the scheme was fair and likely to produce better recoveries than liquidation; accordingly the scheme was sanctioned in the terms of the draft order.

Citation
RE PERFECT SENSE GROUP LTD
Parties
Petitioner / Company: Perfect Recovery Limited; Parent Company: NICI AG; Creditor Class: Scheme Creditors
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 May 2007
Case Number
HCMP341/2007
Procedural Posture
Scheme of Arrangement Under Companies Ordinance (s.166) / Sanction Hearing / Judgment (sanction Granted 29 May 2007)
Outcome
Scheme sanctioned in terms of the draft order submitted
Legal Topics
Scheme of Arrangement, Hive Down, Transfer of Businesses (protection of Creditors) Ordinance Cap.49, Inter Creditor Agreement, Class Composition, Shortened Notice, Disputed Claims Reserve
Source Language
EN
Company Law Insolvency Restructuring Scheme of Arrangement Hive Down Transfer of Businesses (protection of Creditors) Ordinance Cap.49 Inter Creditor Agreement Class Composition +2 more

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Parties

Perfect Recovery Limited

Petitioner / Company

NICI AG

Parent Company

Scheme Creditors

Creditor Class

Procedural Posture

Scheme of Arrangement Under Companies Ordinance (s.166) / Sanction Hearing / Judgment (sanction Granted 29 May 2007)

Legal Issues

  1. 1 Whether the court has jurisdiction to sanction a scheme that alters distribution priorities compared with liquidation
  2. 2 Whether the class of creditors was properly constituted despite tiered distributions to suppliers
  3. 3 Whether a shortened notice period for the creditors' meeting was justified

Ratio Decidendi

The court found that the creditor class was properly constituted, the shortened notice was justified by overwhelming pre-approval and support, and the scheme was fair and likely to produce better recoveries than liquidation; accordingly the scheme was sanctioned in the terms of the draft order.

Court Disposition

Scheme sanctioned in terms of the draft order submitted

Orders

  • Scheme sanctioned in terms of the draft order dated 29 May 2007
  • Leave granted to convene the creditors' meeting on a shortened notice period (five business days)