RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF RARE EARTH MAGNESIUM TECHNOLOGY GROUP HOLDINGS LTD (IN PROVISIONAL LIQUIDATION IN BERMUDA)

RE THE JOINT AND SEVERAL PROVISIONAL LIQUIDATORS OF RARE EARTH MAGNESIUM TECHNOLOGY GROUP HOLDINGS LTD (IN PROVISIONAL LIQUIDATION IN BERMUDA)

The Court granted recognition of the Bermuda joint provisional liquidators and authorised them to exercise in Hong Kong the powers set out in the Bermuda provisional liquidation order, but recognised and preserved the limits in that order (notably powers requiring the Company’s consent); the Court also ordered that...

Source-derived case information.

Citation
[2020] HKCFI 2260
Parties
Applicant (joint Provisional Liquidator): Ms So Kit Yee Anita (Ernst & Young Transactions Limited); Applicant (joint Provisional Liquidator): Mr Roy Bailey (Ernst & Young Ltd); Applicant (joint Provisional Liquidator): Ms Tammy Karina Fu (EY Cayman Ltd); Company (subject): Rare Earth Magnesium Technology Group Holdings Limited (in provisional liquidation in Bermuda)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 September 2020
Case Number
HCMP1274/2020
Procedural Posture
Recognition and Assistance of Foreign Provisional Liquidators (cross‑border Insolvency) / Originating Summons for Recognition and Assistance; Decision and Reasons Delivered
Outcome
Application granted: JPLs recognised and assistance granted in Hong Kong in terms that reflect the Bermuda provisional liquidation order; stay of proceedings ordered subject to leave; costs to be paid as liquidation expense.
Legal Topics
Recognition of Foreign Insolvency Representatives, Provisional Liquidation, Assistance to Foreign Representatives, Stay of Proceedings, Powers and Limits of Provisional Liquidators
Source Language
en
Insolvency Cross‑border Insolvency Company Law Equity Recognition of Foreign Insolvency Representatives Provisional Liquidation Assistance to Foreign Representatives Stay of Proceedings +1 more

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Parties

Ms So Kit Yee Anita (Ernst & Young Transactions Limited)

Applicant (joint Provisional Liquidator)

Mr Roy Bailey (Ernst & Young Ltd)

Applicant (joint Provisional Liquidator)

Ms Tammy Karina Fu (EY Cayman Ltd)

Applicant (joint Provisional Liquidator)

Rare Earth Magnesium Technology Group Holdings Limited (in provisional liquidation in Bermuda)

Company (subject)

Procedural Posture

Recognition and Assistance of Foreign Provisional Liquidators (cross‑border Insolvency) / Originating Summons for Recognition and Assistance; Decision and Reasons Delivered

Legal Issues

  1. 1 Whether the Hong Kong Court should recognise the joint provisional liquidators (JPLs) appointed in Bermuda
  2. 2 Scope and exercise in Hong Kong of powers granted by the Bermuda provisional liquidation order
  3. 3 Extent to which powers requiring consent of the Company should be recognised and enforced in Hong Kong

Ratio Decidendi

The Court granted recognition of the Bermuda joint provisional liquidators and authorised them to exercise in Hong Kong the powers set out in the Bermuda provisional liquidation order, but recognised and preserved the limits in that order (notably powers requiring the Company’s consent); the Court also ordered that no proceedings be commenced or continued in Hong Kong against the Company or its assets without leave, and ordered costs to be paid as an expense of the provisional liquidation.

Court Disposition

Application granted: JPLs recognised and assistance granted in Hong Kong in terms that reflect the Bermuda provisional liquidation order; stay of proceedings ordered subject to leave; costs to be paid as liquidation expense.

Orders

  • 1. The Joint Provisional Liquidators of Rare Earth Magnesium Technology Group Holdings Limited appointed by the Supreme Court of Bermuda on 16 July 2020 are recognised by the High Court of the Hong Kong Special Administrative Region.
  • 2. The JPLs have and may exercise in the Hong Kong Special Administrative Region the powers set out in the Bermuda order including (a) to develop and propose a restructuring of the Company’s indebtedness; (b) to monitor, oversee and supervise the board; (c) to investigate and report to regulators and review internal...