RE HIH CASUALTY AND GENERAL INSURANCE (ASIA) LTD

RE HIH CASUALTY AND GENERAL INSURANCE (ASIA) LTD

The court granted a finite six month adjournment of the provisional liquidations because the provisional liquidators demonstrated that continuation would materially benefit creditors by reducing costs and some delays, the Commissioner of Insurance raised no objection, creditors had been consulted, and comparable procedures have been accepted in other jurisdictions; no prejudice to creditors was identified.

Citation
RE HIH CASUALTY AND GENERAL INSURANCE (ASIA) LTD
Parties
Petitioner: Provisional Liquidators of the HIH Group; Company Subject: HIH Insurance (Asia) Limited; Company Subject: HIH Holdings (Asia) Limited; Company Subject: FAI First Pacific Insurance Company Limited; Company Subject: HIH Casualty and General Insurance (Asia) Limited; Respondent / Interested Party: Official Receiver; Interested Party: Insurance Authority / Commissioner of Insurance
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 December 2001
Case Number
HCCW340/2001
Procedural Posture
Companies Winding Up (insolvency of Insurance Companies) / Application to Extend Provisional Liquidation Pending Preparation of Scheme of Arrangement
Outcome
Extension of provisional liquidation for six months granted
Legal Topics
Provisional Liquidation, Scheme of Arrangement, Appointment of Managers, Adjournment, Creditors' Interests
Source Language
EN
Company Law Insolvency Law Insurance Law Civil Procedure Provisional Liquidation Scheme of Arrangement Appointment of Managers Adjournment +1 more

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Parties

Provisional Liquidators of the HIH Group

Petitioner

HIH Insurance (Asia) Limited

Company Subject

HIH Holdings (Asia) Limited

Company Subject

FAI First Pacific Insurance Company Limited

Company Subject

HIH Casualty and General Insurance (Asia) Limited

Company Subject

Official Receiver

Respondent / Interested Party

Insurance Authority / Commissioner of Insurance

Interested Party

Procedural Posture

Companies Winding Up (insolvency of Insurance Companies) / Application to Extend Provisional Liquidation Pending Preparation of Scheme of Arrangement

Legal Issues

  1. 1 Whether the provisional liquidations should be extended for six months to allow development and presentation of a scheme of arrangement or whether the companies should be placed into liquidation immediately
  2. 2 Whether continuation of provisional liquidation would prejudice creditors or offend the statutory liquidation regime
  3. 3 Whether the combined procedure of provisional liquidation plus scheme of arrangement is appropriate for insolvent insurance companies

Ratio Decidendi

The court granted a finite six month adjournment of the provisional liquidations because the provisional liquidators demonstrated that continuation would materially benefit creditors by reducing costs and some delays, the Commissioner of Insurance raised no objection, creditors had been consulted, and comparable procedures have been accepted in other jurisdictions; no prejudice to creditors was identified.

Court Disposition

Extension of provisional liquidation for six months granted

Orders

  • Provisional liquidations of the four HIH Group companies are adjourned for six months to permit preparation and presentation of a scheme of arrangement