RE THE GRANDE HOLDINGS LTD

RE THE GRANDE HOLDINGS LTD

The Early Termination Amount relied upon by ASM required valuation work (identification of quotations, market data and use of stochastic calculus for exotic derivatives) beyond mere arithmetic; accordingly the claim is an unliquidated debt for the purposes of Rule 125 and ASM was not entitled to vote and its proof admitted for voting purposes should be reversed.

Citation
RE THE GRANDE HOLDINGS LTD
Parties
Applicant/creditor: McVitie Group Holdings Limited; Respondent/creditor: ASM Hudson River Fund; Company: The Grande Holdings Limited; Original Creditor/transferor: Deutsche Bank AG; Provisional Liquidators: Provisional Liquidators
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 January 2015
Case Number
HCCW177/2011
Procedural Posture
Companies (winding Up) No 177 of 2011 / Chambers Decision on Summons Concerning Admission of Proof of Debt and Voting Rights at First Creditors' Meeting (final Judgment)
Outcome
Summons allowed in part: ASM's claim held to be unliquidated for the purposes of Rule 125; ASM not entitled to vote at the creditors' meeting and provisional liquidators' admission for voting purposes reversed.
Legal Topics
Proof of Debt, Liquidated Vs Unliquidated Debt, Creditor Voting Rights, ISDA Master Agreement Interpretation, Valuation of Derivatives
Source Language
EN
Insolvency Company Law Contract Commercial Law Civil Procedure Proof of Debt Liquidated Vs Unliquidated Debt Creditor Voting Rights +2 more

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Parties

McVitie Group Holdings Limited

Applicant/creditor

ASM Hudson River Fund

Respondent/creditor

The Grande Holdings Limited

Company

Deutsche Bank AG

Original Creditor/transferor

Provisional Liquidators

Provisional Liquidators

Procedural Posture

Companies (winding Up) No 177 of 2011 / Chambers Decision on Summons Concerning Admission of Proof of Debt and Voting Rights at First Creditors' Meeting (final Judgment)

Legal Issues

  1. 1 Whether the debt claimed by ASM is a liquidated debt for the purposes of Rule 125 of the Companies (Winding-Up) Rules
  2. 2 Whether ASM was entitled to vote at the creditors' meeting based on its proof of debt
  3. 3 Whether the valuation mechanism in the ISDA Master Agreement produces a sum ascertainable by mere arithmetic

Ratio Decidendi

The Early Termination Amount relied upon by ASM required valuation work (identification of quotations, market data and use of stochastic calculus for exotic derivatives) beyond mere arithmetic; accordingly the claim is an unliquidated debt for the purposes of Rule 125 and ASM was not entitled to vote and its proof admitted for voting purposes should be reversed.

Court Disposition

Summons allowed in part: ASM's claim held to be unliquidated for the purposes of Rule 125; ASM not entitled to vote at the creditors' meeting and provisional liquidators' admission for voting purposes reversed.

Orders

  • ASM Hudson River Fund not entitled to vote at the first meeting of creditors in respect of the disputed proof of debt
  • The Provisional Liquidators' decision to admit ASM's proof of debt for voting purposes is reversed