RE THE GRANDE HOLDINGS LTD

RE THE GRANDE HOLDINGS LTD

The court admitted McVitie’s proof for voting purposes in part at US$26,092,345.29. The admission reflects that the Kayne creditors received recoveries (US$4,000,000 from Emerson and US$28,000,000 under the sale/settlement) which reduce the amount provable to avoid double recovery; where apportionment between purchase of the judgment and settlement of co-obligor claims is uncertain, the court will admit only the quantifiable net amount and allow the Provisional Liquidators’ reduction to stand.

Citation
RE THE GRANDE HOLDINGS LTD
Parties
Applicant/assignee Creditor: McVitie Group Holdings Limited; Respondent/provisional Liquidators: Provisional Liquidators of The Grande Holdings Limited; Company/debtor: The Grande Holdings Limited (嘉域集團有限公司); Assignor/judgment Creditors: Kayne creditors; Third Party Defendant/settling Party: Emerson Radio Corp.
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 / Application to Admit Proof of Debt — Decision on Summons (chambers)
Outcome
McVitie's proof of debt admitted in part
Legal Topics
Proof of Debt, Admission for Voting Purposes, Assignment of Judgments, Alter Ego Liability, Settlement Apportionment, Double Recovery
Source Language
EN
Insolvency Company Law Civil Procedure Conflict of Laws Proof of Debt Admission for Voting Purposes Assignment of Judgments Alter Ego Liability +2 more

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Parties

McVitie Group Holdings Limited

Applicant/assignee Creditor

Provisional Liquidators of The Grande Holdings Limited

Respondent/provisional Liquidators

The Grande Holdings Limited (嘉域集團有限公司)

Company/debtor

Kayne creditors

Assignor/judgment Creditors

Emerson Radio Corp.

Third Party Defendant/settling Party

Procedural Posture

Companies (winding Up) No 177 of 2011 / Application to Admit Proof of Debt — Decision on Summons (chambers)

Legal Issues

  1. 1 Whether McVitie’s proof of debt should be admitted in full for voting purposes
  2. 2 Whether payments under settlement agreements (US$28,000,000 and US$4,000,000) reduce the amount provable and how to apportion the US$28,000,000
  3. 3 Whether the court may go behind a foreign judgment/assignment to prevent double recovery

Ratio Decidendi

The court admitted McVitie’s proof for voting purposes in part at US$26,092,345.29. The admission reflects that the Kayne creditors received recoveries (US$4,000,000 from Emerson and US$28,000,000 under the sale/settlement) which reduce the amount provable to avoid double recovery; where apportionment between purchase of the judgment and settlement of co-obligor claims is uncertain, the court will admit only the quantifiable net amount and allow the Provisional Liquidators’ reduction to stand.

Court Disposition

McVitie's proof of debt admitted in part

Orders

  • McVitie’s proof of debt admitted for voting purposes in the amount of US$26,092,345.29
  • McVitie to pay the Provisional Liquidators’ costs of this application (order nisi)