RE LEHMAN BROTHERS FUTURES ASIA LTD

RE LEHMAN BROTHERS FUTURES ASIA LTD

The court exercised its jurisdiction to order interim payments but reduced the percentage sought: it ordered interim payments of 75% of the fees claimed by the provisional liquidators and their agents for the provisional liquidation period (excluding fees for billing tasks), granted 100% interim reimbursement of other disbursements, declined any interim payment for billing tasks pending further assessment, and required undertakings to repay any excess; the court also granted a validation order under section 182 and reserved costs.

Citation
RE LEHMAN BROTHERS FUTURES ASIA LTD
Parties
Company (subject of Winding Up): Lehman Brothers Securities Asia Limited; Company (subject of Winding Up): Lehman Brothers Futures Asia Limited; Company (subject of Winding Up): Lehman Brothers Commercial Corporation Asia Limited; Company (subject of Winding Up): Lehman Brothers Asia Limited; Company (subject of Winding Up): Lehman Brothers Asia Holdings Limited; Company (subject of Winding Up): Lehman Brothers Asia Capital Company; Company (subject of Winding Up): LBQ Hong Kong Funding Limited; Company (subject of Winding Up): Lehman Brothers Nominees (H.K.) Limited; Provisional Liquidators and Liquidators: Paul Brough, Edward Middleton and Patrick Cowley (KPMG); Interested Party: Official Receiver; Solicitors for the Provisional Liquidators: Melveny & Myers
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 August 2009
Case Number
HCCW463/2008
Procedural Posture
Companies (winding Up) / Interim Directions Hearing on Applications for Directions and Interim Payments for Provisional Liquidators' Remuneration and Disbursements
Outcome
Interim payment order granted in part with conditions and undertakings; further procedure and assessment to follow.
Legal Topics
Provisional Liquidators' Remuneration, Interim Payment, Taxation of Costs, Validation Order Under S182, Assessment Procedure and Appointing Assessor
Source Language
EN
Insolvency Law Company Law Civil Procedure Provisional Liquidators' Remuneration Interim Payment Taxation of Costs Validation Order Under S182 Assessment Procedure and Appointing Assessor

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Parties

Lehman Brothers Securities Asia Limited

Company (subject of Winding Up)

Lehman Brothers Futures Asia Limited

Company (subject of Winding Up)

Lehman Brothers Commercial Corporation Asia Limited

Company (subject of Winding Up)

Lehman Brothers Asia Limited

Company (subject of Winding Up)

Lehman Brothers Asia Holdings Limited

Company (subject of Winding Up)

Lehman Brothers Asia Capital Company

Company (subject of Winding Up)

LBQ Hong Kong Funding Limited

Company (subject of Winding Up)

Lehman Brothers Nominees (H.K.) Limited

Company (subject of Winding Up)

Paul Brough, Edward Middleton and Patrick Cowley (KPMG)

Provisional Liquidators and Liquidators

Official Receiver

Interested Party

Melveny & Myers

Solicitors for the Provisional Liquidators

Procedural Posture

Companies (winding Up) / Interim Directions Hearing on Applications for Directions and Interim Payments for Provisional Liquidators' Remuneration and Disbursements

Legal Issues

  1. 1 Whether the court has jurisdiction to order interim payments to provisional liquidators
  2. 2 Appropriate level/percentage for interim payments on account of claimed fees
  3. 3 Whether remuneration for billing tasks is recoverable and should be included in interim payments

Ratio Decidendi

The court exercised its jurisdiction to order interim payments but reduced the percentage sought: it ordered interim payments of 75% of the fees claimed by the provisional liquidators and their agents for the provisional liquidation period (excluding fees for billing tasks), granted 100% interim reimbursement of other disbursements, declined any interim payment for billing tasks pending further assessment, and required undertakings to repay any excess; the court also granted a validation order under section 182 and reserved costs.

Court Disposition

Interim payment order granted in part with conditions and undertakings; further procedure and assessment to follow.

Orders

  • Interim payment of 75% of the fees claimed by the provisional liquidators and their agents for the provisional liquidation period, excluding fees relating to billing tasks
  • Interim payment of 100% of other disbursements (excluding agents' fees) for the provisional liquidation period