RE HIH INSURANCE (ASIA) LTD

RE HIH INSURANCE (ASIA) LTD

The court granted a six month adjournment and allowed the companies to remain in provisional liquidation because the provisional liquidators demonstrated tangible cost and time savings that benefit creditors, the Commissioner of Insurance raised no objection, creditors were consulted informally, there was no...

Source-derived case information.

Citation
RE HIH INSURANCE (ASIA) LTD
Parties
Company (provisional Liquidators Appointed): HIH Insurance (Asia) Limited; Company (provisional Liquidators Appointed): HIH Holdings (Asia) Limited; Company (provisional Liquidators Appointed): FAI First Pacific Insurance Company Limited; Company (managers Appointed): HIH Casualty and General Insurance (Asia) Limited; Petitioner: Provisional Liquidators/Managers of the HIH Group; Respondent: Official Receiver; Respondent: Commissioner of Insurance / Insurance Authority
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 December 2001
Case Number
HCCW338/2001
Procedural Posture
Companies Winding Up (insurance Companies) / Ruling on Application to Extend Provisional Liquidation Pending Preparation and Presentation of a Scheme of Arrangement
Outcome
Further adjournment granted; companies to remain in provisional liquidation for a period of six months
Legal Topics
Provisional Liquidation, Scheme of Arrangement, Appointment of Managers, Adjournment of Winding Up Petitions, Creditor Protection
Source Language
en
Company Law Insolvency Law Insurance Law Civil Procedure Provisional Liquidation Scheme of Arrangement Appointment of Managers Adjournment of Winding Up Petitions +1 more

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Parties

HIH Insurance (Asia) Limited

Company (provisional Liquidators Appointed)

HIH Holdings (Asia) Limited

Company (provisional Liquidators Appointed)

FAI First Pacific Insurance Company Limited

Company (provisional Liquidators Appointed)

HIH Casualty and General Insurance (Asia) Limited

Company (managers Appointed)

Provisional Liquidators/Managers of the HIH Group

Petitioner

Official Receiver

Respondent

Commissioner of Insurance / Insurance Authority

Respondent

Procedural Posture

Companies Winding Up (insurance Companies) / Ruling on Application to Extend Provisional Liquidation Pending Preparation and Presentation of a Scheme of Arrangement

Legal Issues

  1. 1 Whether provisional liquidation of the HIH Group should be continued for six months pending preparation of a scheme of arrangement
  2. 2 Whether continuation prejudices creditors or departs impermissibly from statutory liquidation scheme
  3. 3 Whether the proposed procedure is supported by precedent and statutory powers

Ratio Decidendi

The court granted a six month adjournment and allowed the companies to remain in provisional liquidation because the provisional liquidators demonstrated tangible cost and time savings that benefit creditors, the Commissioner of Insurance raised no objection, creditors were consulted informally, there was no identifiable prejudice to creditors, and the procedure is supported by established precedent and statutory powers.

Court Disposition

Further adjournment granted; companies to remain in provisional liquidation for a period of six months

Orders

  • Provisional liquidations of the companies in HCCW 337, 338, 339 and 340 of 2001 are adjourned for a further six months and the companies shall remain in provisional liquidation