RE LEHMAN BROTHERS ASIA HOLDING LTD

Parties

Procedural Posture

Companies (winding Up) Under the Companies Ordinance (cap.32) / Directions Hearing Concerning Interim Payment and Assessment of Provisional Liquidators' Remuneration (interim Payment Ordered)

Legal Issues

1. 1 Whether the court has jurisdiction to make interim payments to provisional liquidators prior to final taxation or assessment
2. 2 What proportion of claimed fees is appropriate for interim payment in large and complex insolvencies
3. 3 Whether costs incurred in preparing and scrutinising bills (Billing Tasks) are recoverable on an interim basis

Ratio Decidendi

The court exercised its jurisdiction to authorize interim payments on account of provisional liquidators' remuneration in a very large and complex insolvency, but limited the interim quantum to 75% of the fees claimed for provisional liquidators and their agents (excluding Billing Tasks) and allowed 100% of other disbursements; Billing Task costs were excluded from interim payment and left for further consideration; undertakings to repay any excess were accepted and a validation order under s182 was granted; liberty to apply for further interim payments was given.

Court Disposition

Interim payment partly approved; validation order granted; costs reserved for further hearing.

Orders

• Interim payment of 75% of the fees of the provisional liquidators and of their agents for the provisional liquidation period ordered (excluding fees incurred in respect of the Billing Tasks)
• Interim payment of 100% of other disbursements during the provisional liquidation period ordered (excluding agents' fees covered above)