RE LEHMAN BROTHERS ASIA LTD

RE LEHMAN BROTHERS ASIA LTD

The court exercised its jurisdiction to authorise interim payments on account of provisional liquidators' remuneration in this large, complex multi-jurisdictional liquidation, but limited the interim quantum to 75% of the fees claimed for the Provisional Liquidators and their agents (excluding Billing Tasks) and...

Source-derived case information.

Citation
RE LEHMAN BROTHERS ASIA LTD
Parties
Company: Lehman Brothers Securities Asia Limited; Company: Lehman Brothers Futures Asia Limited; Company: Lehman Brothers Commercial Corporation Asia Limited; Company: Lehman Brothers Asia Limited; Company: Lehman Brothers Asia Holdings Limited; Company: Lehman Brothers Asia Capital Company; Company: LBQ Hong Kong Funding Limited; Company: Lehman Brothers Nominees (H.K.) Limited; Provisional Liquidators and Applicants: Paul Brough, Edward Middleton and Patrick Cowley (KPMG); Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 August 2009
Case Number
HCCW442/2008
Procedural Posture
Companies (winding Up) / Directions Hearing on Interim Payment of Provisional Liquidators' Remuneration (interim Hearing)
Outcome
Application partly granted: interim payments authorised subject to exclusions and undertakings; validation order granted; costs reserved.
Legal Topics
Provisional Liquidators' Remuneration, Interim Payments on Account, Assessment of Fees, Validation Order Under Section 182, Undertakings and Security, Appointment of Assessor
Source Language
en
Company Law Insolvency Law Procedural Law Provisional Liquidators' Remuneration Interim Payments on Account Assessment of Fees Validation Order Under Section 182 Undertakings and Security +1 more

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Parties

Lehman Brothers Securities Asia Limited

Company

Lehman Brothers Futures Asia Limited

Company

Lehman Brothers Commercial Corporation Asia Limited

Company

Lehman Brothers Asia Limited

Company

Lehman Brothers Asia Holdings Limited

Company

Lehman Brothers Asia Capital Company

Company

LBQ Hong Kong Funding Limited

Company

Lehman Brothers Nominees (H.K.) Limited

Company

Paul Brough, Edward Middleton and Patrick Cowley (KPMG)

Provisional Liquidators and Applicants

Official Receiver

Interested Party

Procedural Posture

Companies (winding Up) / Directions Hearing on Interim Payment of Provisional Liquidators' Remuneration (interim Hearing)

  1. 1 Whether the court has jurisdiction to order interim payments to provisional liquidators
  2. 2 Appropriate quantum (percentage) for interim payments
  3. 3 Whether billing/preparation costs (Billing Tasks) are recoverable and payable on interim basis

Ratio Decidendi

The court exercised its jurisdiction to authorise interim payments on account of provisional liquidators' remuneration in this large, complex multi-jurisdictional liquidation, but limited the interim quantum to 75% of the fees claimed for the Provisional Liquidators and their agents (excluding Billing Tasks) and allowed 100% of other disbursements; Billing Tasks were excluded from interim payment pending further assessment; undertakings to repay excess were accepted and a validation order under s182 was granted; liberty to apply for further interim payments was given.

Court Disposition

Application partly granted: interim payments authorised subject to exclusions and undertakings; validation order granted; costs reserved.

Orders

  • Interim payment of 75% of the fees of the Provisional Liquidators and of their agents for the Provisional Liquidation Period (excluding fees incurred in respect of this application and fees for the Billing Tasks) to be made to the Provisional Liquidators
  • Interim payment of 100% of other disbursements during the Provisional Liquidation Period (excluding agents' fees) to be made to the Provisional Liquidators